Insurer Sues Behavioral Hospital Over Sexual Misconduct Claims

April 30, 2026, 3:34 PM UTC

An insurance company sued a behavioral hospital in Washington state, arguing it shouldn’t have to cover claims related to an alleged sexual relationship between a mental health technician and a patient who later died by suicide.

A policy issued by Coverys Specialty Insurance Co. excludes coverage for claims involving sexual misconduct, the insurer said in a complaint filed Wednesday in the US District Court for the Western District of Washington against Vest Seattle LLC, which operates Smokey Point Behavioral Hospital.

The mental health technician allegedly engaged in the relationship with the patient after she was discharged from inpatient treatment but ...

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