Hunton Insurance Recovery Blog

When does an act constitute a “professional service”? A recent Sixth Circuit decision applying Kentucky law held that the answer to that question lies in the service itself, and not the context or circumstances surrounding its use.

In Scottsdale Insurance Co. v. Seven Counties Services, Inc., No. 25-5806 (6th Cir. Sept. 9, 2026), a behavioral care center sought coverage under a commercial general liability policy after it was sued following the death of a minor resident who choked while being restrained by workers. Although the care center argued that its employees’ use of the restraint was improper and inconsistent with their training, the court concluded that the restraint was an excluded “professional service” because it involved specialized training and the exercise of judgment, and was subject to state regulation.

The decision illustrates the potential breadth of professional services exclusions and highlights the need for policyholders to consider the scope of the services they provide, especially when those services carry a risk of injury, in building a liability insurance program.

As expanded upon here in our firm’s Three Key Things in Health Care update, health care providers should not let a recent opinion piece in the Wall Street Journal dissuade them from aggressively pursuing recovery for business interruption losses related to COVID. In short, the authors of that editorial ignore the language and structure of many insurance policies, which either provide for coverage of COVID-related losses by their express terms or expressly contemplate state-mandated coverage expansions favoring the insured as binding on the insurer ...