Court allows excess liability coverage for rape settlement

An abuse and molestation exclusion in a Bojangles franchisee’s business owners policy bars coverage for a settlement involving the alleged rape of an employee, but another policy issued by the same insurer does not exclude it, a federal judge ruled Wednesday.

In BOJ of WNC LLC d/b/a Bojangles Famous Chicken N Biscuits v. Westfield National Insurance Co., the U.S. District Court for the Southern District of Georgia ruled that the restaurant’s excess umbrella policy does not have an abuse and molestation exclusion and that other exclusions in the policy do not apply.

The underlying incident took place at an Augusta, Georgia, Bojangles, where one of the restaurant’s managers allegedly locked another employee in a bathroom and raped her. The underlying lawsuit was settled in 2024 and the franchisee sought coverage from Westfield.

Westfield denied coverage, citing exclusions for employment liability, workers compensation and employment-related practices in the umbrella policy.

The court ruled that the injuries did not arise out of the worker’s employment or the restaurant’s employment-related practices.

“There is coverage, a duty to indemnify, and a duty to defend under the (Commercial Liability Umbrella Coverage) Form,” the court ruled.

Westfield Center, Ohio-based Westfield did not immediately respond to a request for comment.