This court ruling deals with often thorny issue of what to do with innocent policy holders who are being sued for not adequately supervising people under their control: in this case it was parents being sued for the awful acts of their child who physically assaulted a fellow student and uploaded video of assault on social media. Normally innocent policy holders are exempt from the exclusions that remove coverage for intentional acts, but this case turned on the application of a unique exclusion that said the insurance company did not have to insure claims arising from a “failure of any person insured by this policy to take steps to prevent sexual, physical, psychological or emotional abuse, molestation or harassment or corporal punishment, however, caused.” The court concluded that the conduct of the child fit within these exclusionary words, thereby holding that the insurance company did not have to provide a defence or provide indemnification to the parents in the lawsuit that they faced at the hands of the victimized student.
R.C. and J.M. v. Western Assurance Company, 2022 ONSC 100 (CanLII)
https://www.canlii.org/en/on/onsc/doc/2022/2022onsc100/2022onsc100.html