Opinion ID: 535631
Heading Depth: 1
Heading Rank: 5

Heading: additional persons insured

Text: 45 As respects bodily injury, property damage and personal injury and advertising injury coverages, under the provision Persons Insured, the following are added as insured: 46 . . . . . 47 (B) Employee--Any employee (other than executive officers) of the named insured while acting within the scope of his duties as such, but the insurance afforded to such employee does not apply: 48 (1) to bodily injury or personal injury to another employee of the named insured arising out of or in the course of his employment; 49 . . . . . 50 Southern Publishing argues that since the complaint alleges an alternative claim for negligent slander, the district court erred in refusing to find that the slander claim was covered by this policy. We agree. 51 The policy provides coverage for libel, slander, and defamatory remarks, unless they were made by or at the direction of the insured with knowledge of the falsity thereof. A plain reading of this provision leads us to conclude that the policy excludes only intentional slander. The district court correctly concluded that Corn's claim for intentional slander is not covered under the policy. However, Corn also alleged negligent slander. Paragraph 18 of her complaint asserts that Thompson's statement was known by the said Defendant to be false or was stated with gross and reckless disregard of the truth .... (Emphasis added). 52 Under Mississippi's allegations of the complaint rule if the factual allegations of the complaint bring the action within coverage of the policy, the insurer has a duty to defend. Since Corn's claim for negligent slander is within the policy's coverage, Southern Guaranty had a duty to defend Southern Publishing against the claim. We therefore conclude that the district court erred in holding that the slander claim was excluded from coverage under the policy's exception for intentional conduct of the insured.