Business & Insurance Litigation Newsletter for Indiana

Implied Exception Doctrine Guards Against Losses Intentionally Caused by the Insured

In PSI Energy, Inc. v. Home Ins. Co., 801 N.E.2d 705, 724 (Ind. Ct. App. 2004), the Court held that insurers were entitled to raise the "intended and expected damage" defense regardless of whether the policy contained any express language because the very nature of insurance requires that the loss be accidental and not planned, intended, or anticipated by the insured. Further, the Court held that the insured bore the burden of proving that the property damage at issue was neither expected nor intended since the implied limitation was an "exception" and not an "exclusion."

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The Bloomington, Indiana, law firm of Mallor Clendening Grodner & Bohrer LLP handles a wide range of legal issues and provides a lifetime of solutions to clients throughout Central and Southern Indiana including those from Monroe County and from cities and communities such as Bloomington, Evansville, Indianapolis, Bedford, Bloomfield, Franklin, Martinsville, French Lick, Paoli, Columbus, Spencer, Mooresville, and Seymour.