The question of the month in the Dec Page deals with concealed weapon laws and the liability issues facing an employer whose employees bring weapons onto the workplace premises. Many states have passed concealed weapon laws that allow citizens to carry concealed weapons as they go about their daily routines. These laws may not distinguish situations where a citizen should not carry a concealed weapon, and therein forms the danger for an employer. Bodily injury or death caused by a weapon wielded by an employee on company property can leave the employer open to lawsuits based on various legal theories.

If an employer has employees who insist on carrying concealed weapons (in accordance with the law), what is the duty of care owed by the employer to a customer on the premises? What is the duty of care owed to employees, especially since the duty of a safe working environment is commonly accepted as one of the main duties of an employer toward an employee? What other issues will an employer face and what are areas of concern when his employees do carry concealed weapons onto the work premises? And, will the general liability policy of the employer apply to claims made against him based on an employee shooting another person on the work premises?

For the answers to these questions and more, link onto the designated article in the FC&S Bulletins.

The Dec Page also offers several court cases dealing with the issue of bad faith. Bad faith and the duties of an excess insurer is the issue in a case decided by an appeals court in Arizona . A California appeals court tackles the question of whether an eight year old claim can be the basis of a bad faith judgment against the insurer. And, in a case brought before a Federal court, the issue of which state law controlled the outcome of a bad faith claim was settled.

Also presented in the Dec Page is information from the National Insurance Crime Bureau on which states have the highest auto theft rates. The western states lead the pack, with Las Vegas, Nevada holding down the number one spot. Finally, several developments from the American Association of Insurance Services (AAIS) are reported for the benefit of those who deal with that organization.

Questions and Answers

The insured borrowed a bobcat to remove snow from his parking lot. The bobcat broke down during use and the owner of the machine did not have it insured. Will the general liability policy of the insured pay for the damage to the bobcat? See Care, Custody, or Control Exclusion and Borrowed Vehicle.

The insured was sued and the complaint alleged intentional injury against the insured. The insurer denied coverage based on the wording of the complaint. Is this proper? See Intentional Injury and Coverage under the CGL Form.

In a claim where a doctor is suing a hospital because the latter negligently suspended the doctor's privileges in that hospital, can the employers liability exclusion on the CGL form apply? See Employers Liability Exclusion under CGL Form.

The insured traded a vehicle that was part of its business to a dealer. Two years later, the employee of the vehicle owner was injured in an accident caused by a tire that blew out. The insured is being sued for the injuries based on a theory of strict liability with respect to sale of a product. The insurer is denying coverage based on the auto exclusion. Is the insurer correct in its denial of coverage? See Auto Accident Claims Covered by CGL Form?