PA. Supreme Court Rules That Liability Carriers Are Not Automatically Protected From Having To Provide Coverage in Sex Trafficking Cases

In the case of Samsung Fire and Marina v. R.I. Settlement Trust, No. 61 EAP 2024 (Pa. July 21, 2026) (Op. by Donohue, J.)(Wecht, J., Concurring), the Pennsylvania Supreme Court issued an opinion responding to questions presented by a way of a Petition for Certification filed by the United States Court of Appeals for the Third Circuit relative to the ability of insurance carriers to block its insured hotels from receiving from insurance coverage if they are sued over allegations that they allegedly turned a blind eye to sex trafficking activities on hotel premises.

In a unanimous decision, the Pennsylvania Supreme Court rejected efforts by insurance carriers to deny coverage in this regard. The Court held that the fact that Pennsylvania criminalizes sex trafficking activities through its criminal laws does not mean that hotels that profited from the conduct should automatically be barred from seeking insurance coverage for lawsuits that arise out of that conduct.

In so ruling, the Supreme Court reviewed the interplay between the public policy of interpreting insurance contracts broadly to favor coverage, and the policy against requiring carriers to provide coverage when the conduct at issue is so repugnant to society that the provision of insurance coverage for such acts would violate other overriding public policy.

The Court noted that, where Pennsylvania's Human Trafficking Law does not address the issues presented regarding the availability of insurance coverage, the parties should instead look to the insurance contract to resolve any cover disputes.

Accordingly, the Pennsylvania Supreme Court held that “neither an insurer’s duty to defend nor its duty to identify is abrogated on the basis of public policy when the insured is alleged to have enabled or profited from sex trafficking.”

Anyone wishing to review a copy of this decision may click this LINK.  The Concurring Opinion by Justice Wecht can be viewed HERE.

Source: “Pa. Supreme Court Removes Insurance Hurdle For Sex Trafficking Survivors Seeking Coverage Stemming From Abuse," by Max Mitchell of The Legal Intelligencer (July 21, 2026).