Insurance professional services exclusion applies to a sleep study company (US)

A Georgia US court found that the insurer did not have to defend a sleep study company from a negligent suit by the family of a deceased patient because a professional services exclusion applied to the claims in the underlying action.

The company conducted sleep studies for its patients and sought an indemnity from the insurers for a suit brought by the family of a patient who dies after back-fracture complications relating to an injury he suffered in a fall while in the case of the company.

The policy excluded coverage “due to rendering or failure to render any professional service”.  The court held that all the claims stemmed from the company’s professional services.

Owners Insurance Co v Advanced Sleep Technologies, Inc. case no. 1:21-cv-00086 in the US district court for the Southern district of Georgia