Our insured rents a house to a family. The family complains about bed bugs and makes claims for the mental and bodily injury caused by the bed bugs. Is the infestation considered an accident and BI as defined by the policy? I have attached a copy of the liability endorsement.
Arkansas Subscriber
The policy form you attached (AAIS GL-600) defines bodily injury as bodily harm, sickness or disease sustained by a person and includes required care and loss of services. Bodily injury includes death that results from bodily harm, sickness or disease.
Whenever a term is undefined in the policy, then that term will be assigned its common meaning found in a standard dictionary.
In the form, an occurrence is defined as an accident, including repeated exposure to similar conditions. Merriam-Webster defines accident in part as an unforeseen and unplanned event or occurrence. Using this definition, bed bug injury would meet the definition of an occurrence.
Merriam-Webster defines bodily injury but does not define bodily harm; rather it states that bodily injury is any damage to a person's physical condition including pain or illness, and that bodily injury is also called bodily harm. However, the definition of harm by Merriam-Webster means 1) physical or mental damage: injury; or 2) mischief, hurt.
Using the standard definitions would seem to indicate that both mental and bodily injury coverage could be applied to bed bug injury in the owner's property.
However, there are exclusions in the attached policy form that would apply to medical payments coverage. Under the section Additional Exclusions That Apply to Medical Payments, paragraph 2.b. excludes medical expenses for bodily injury to a tenant of an insured; and paragraph 3. excludes medical expenses for bodily injury to a person injured on that part of the premises that the person normally occupies.
For other bodily injury, other than medical payments, Condition 5. Insurance Under More Than One Policy applies, as the tenant's medical insurance would provide primary coverage for their bodily injury, making this policy excess over the tenant's medical insurance. Please note that some states have specific laws regarding bed bugs, but Arkansas does not have such a law.