A hospital employee improperly accessed a neighbour’s medical records. The employee was not in the neighbour’s circle of care. The neighbour sued the employee for mental anguish arising from intrusion upon seclusion. The hospital’s liability policy provided coverage for all employees of the hospital while acting under the direction of the hospital. The court held that the insurer owed the employee a duty to defend. The policy’s explicit provision of coverage for invasion or violation of privacy and for invasion or violation of the right of policy by definition offered coverage for highly offensive conduct, which logically must cover access to records outside of the circle of care.
