Coverage disputes and “arising out of” claims

In the 1980s, the Policy sang about synchronicity: “Effect without a cause...Sub-atomic laws, scientific pause....”

Psychologist Carl Jung offered a better explanation of the concept, stating that synchronicity describes events that are meaningful coincidences if they occur without a causal relationship.

In determining coverage for insurance disputes over the wording “arising out of,” however, synchronicity won't do. As the following recent court decisions demonstrate, there must be a causal relationship between the loss and the risk from which it arises.

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