Commingling Exclusion Bars Coverage For Employee Theft, Federal Judge Says

Mealey's (April 14, 2020, 1:01 PM EDT) -- BISMARCK, N.D. — A chief federal judge in North Dakota on April 10 held that a professional liability errors and omissions insurance policy’s commingling exclusion bars coverage for a $1,294,967.58 theft committed by the insured’s employee, granting the insurer’s motion to dismiss the insured’s breach of contract and bad faith lawsuit seeking the remaining $269,967.58 of its loss (Campbell Property Management, LLC v. Lloyd's Syndicate 3624, Lloyd's of London Underwriters, No. 18-00237, D. N.D., Eastern Div., 2020 U.S. Dist. LEXIS 63064)....