Not included in this list are many of the common childhood diseases such as chicken pox, measles, mumps, and rubella. These diseases still pose a public health risk, however with the use of vaccines they were eradicated or kept well under control. Until now. Several years ago, a movement against vaccinations became popular because of a now recanted study stating that vaccinations cause autism, leading many to shy away from preventative vaccinations. There are also those who avoid vaccines for religious or philosophical reasons, and many states allow exemptions based on these reasons. All states except California, West Virginia, Mississippi and Arizona allow exemptions based on religious reasons. All fifty states allow exemptions for medical reasons, and roughly a dozen states allow philosophical exemptions.

Unfortunately, this has led to measles outbreaks across the country in record numbers even though measles was considered eradicated in 2000. Measles is highly contagious, and the virus can live up to two hours in a room where an infected person coughed or sneezed. If one person has measles, there is a ninety percent chance that those close to the person who are not immune will catch it. There have been 465 cases since January in nineteen states. According to the CDC, an outbreak is defined as three or more cases ongoing in any one area. Since 2008, cases have been increasing and are at an all-time high. Per the CDC, one out of four cases of measles results in hospitalizations; one per thousand leads to encephalitis, and there are one or two deaths per thousand cases in the United States.

Because of these outbreaks, various communities have taken steps to restrict the movements of unvaccinated individuals. New York City declared a public health emergency and required those living in certain zip codes to be vaccinated, or face potential fines. An executive order was issued that pulled 6,000 unvaccinated children out of school; lastly, the county executive declared a state of emergency barring unvaccinated children and teenagers from public places.

Many parents who have not vaccinated their children are filing suit in New York City because of those vaccination requirements, claiming it violates their civil rights. So what has all this to do with insurance? As contagious as the disease is, it becomes easier to identify who spread the disease to others. This leads us to a liability issue; if someone knowingly sent their unvaccinated child to school while contagious, that person could be held liable for starting or spreading an outbreak. Cities are threatening fines for those who do not vaccinate their children or keep them from public spaces if they are unvaccinated.

Under the liability section of the ISO Homeowners HO 00 03, there is an exclusion for the injury or property damage due to the spread of a communicable disease. Communicable disease is not defined in the policy. Courts will refer to a standard desk reference; Merriam Webster Online defines communicable disease as “an infectious disease transmissible (as from person to person) by direct contact with an affected individual or the individual's discharges or by indirect means (as by a vector)”. This would include measles, mumps, chicken pox, and many other diseases. In theory, a parent could send an infected child to school and that child could infect others. If the parents of those ill children file a claim or sue the parent of the ill child, there is no coverage in the policy.

The Commercial General Liability policy (CGL) CG 00 01 agrees to pay sums for property damage or bodily injury that the insured becomes legally liable for to which the insurance applies. The definition of insured includes employees for acts within the scope of their employment by the insured or while performing duties that relate to the conduct of the business. Employees are not insureds for bodily injury that occurs to co-employees, volunteers, spouses, children, parents, or siblings of co-employees during the course of employment. If an employee infects customers at the store, the insurance policy could pay out. However, there is the exclusion for expected or intended injury. If an employee is in an active contagious state and is aware of it, infecting customers could be considered an expected injury and coverage would be denied.

While filing a claim against someone when a person has been infected with a communicable disease is far down on the list of probabilities, it is possible. Measles is a serious disease and can result in deafness or death. The industry should always be aware of potential claims, even if they are not likely.