Intentional Act by Employee Now Covered by Employer’s Insurance

In Liberty Surplus Insurance Corporation v. Ledesma & Meyer Construction Company, Inc. (2018), an employee hired by his brother-in-law, the owner of the school, raped a minor while employed by the school. The employee was hired despite being on the sex offender registry. The court held that when an employee intentionally inflicts harm on a third party, an employer’s insurer may actually have to cover the loss as an accident. In this action for negligent hiring, supervision and retention related to the employee’s intentional act, the employer, not the employee, was held liable, due to the employer’s position in the causal chain that led to the harm, despite not acting directly to cause the harm.