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Increase In Trafficking Reveals Hospitality Coverage Concerns


MMM’s Seslee Smith and Ryan Burke were recently quoted in a Law360 article analyzing the potential ways that the insurance industry will handle the rise of human trafficking cases in the United States.  Smith describes this as a “thorny” issue due to the courts often being resistant to rule in favor of insurers as “the facts alleged are so sympathetic to the claimants or the plaintiffs because the facts can be quite horrific.”  Burke and Smith state that although it is unknown how policy language regarding an insurer’s role in coverage for trafficking allegations will evolve, they do anticipate an increase in specific trafficking exclusions.  Burke explains that “if insurers make clear through exclusion that trafficking won’t be covered, there’s quite an incentive to prevent trafficking at the premises.”  Smith agreed and added that if “hotel owners, operators, and managers want to be insured, they’ll be willing to comply with insurers driving better practices and requiring more education so that, if there is a potential claim, it’s covered."

Read the full story here.  A Law360 subscription may be required.