Pekin Insurance v. Phelan

Plaintiff, Pekin Insurance Company (Pekin), appeals the circuit court’s judgment that it had a duty to defend a suit against its insured, Ann Phelan, and her business, R. Rootz Salon. The underlying suit, initiated by Imaginations on Hair, Inc. (Imaginations), alleges that Phelan and others made statements intended to lure customers away from Imaginations. Phelan claimed coverage from the suit under her business insurance policy underwritten by Pekin. Pekin argues that the underlying complaint does not allege conduct covered by the insurance policy because Phelan’s statements did not…