Insurer Not Obligated to Cover Pa. Hotel for Sex Trafficking Lawsuits, 3rd Cir. Affirms

PHILADELPHIA — A federal appellate panel has affirmed that Nautilus Insurance Co. is not obligated to provide coverage to a Philadelphia-area hotel for sex trafficking lawsuits because they fall within a policy exclusion for claims “arising out of any assault or battery.”

In an Oct. 31 opinion, the 3rd Circuit U.S. Court of Appeals panel found the allegations in each underlying complaint alleged assault and battery in the form of harmful or offensive bodily contact.

Neshaminy Inn, a Bucks County, Pa., hotel, sought coverage from Nautilus for three civil lawsuits filed in the Philadelphia County Court of Common Pleas, in …