State Farm Sues Sandusky Over Policy Coverage

State Farm has filed a lawsuit in Pennsylvania on July 19 against former Penn State assistant football coach Jerry Sandusky. In its complaint, State Farm Fire and Casualty Co. asked a judge to declare that the insurer’s homeowners’ policy for Sandusky does not cover legal costs for his criminal defense or civil lawsuits brought by his victims. State Farm states in its lawsuit — filed the lawsuit in U.S. District Court for the Middle District of Pennsylvania — that Sandusky had asked the insurer to pay for legal costs of his criminal defense.

State Farm declined Insurance Journal’s request for comment on the lawsuit because the matter is in litigation. Homeowners’ insurance with personal liability coverage can offer coverage for claims arising from the insured’s negligent acts but not for intentional, willful or malicious acts.