California Courts of Appeal,
Insurance
Dec. 13, 2016
Court split 'arising out of' insurance policy exclusions
When "arising out of" is used in an insuring clause, there is full agreement among California courts that it should be broadly construed. But courts disagree when the language appears in policy exclusions.
Liability insurance policies of every stripe - e.g., commercial general liability, directors and officers, professional liability - use the connective phrase "arising out of," both in insuring and exclusionary clauses, to connote the degree of causation necessary either to trigger coverage or to exclude coverage. Since "arising out of" plays such an integral role in defining those risks an insurance policy will cover or exclude, it is critical th...
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