Coverage Question Series – Part 13
Post on June 22nd, 2018
This is a continuing series in which we address policy coverage questions that we routinely discuss with you and your colleagues. The answers provided are based on the basic policy form, currently LPLP-1r; refer to your specific policy and any endorsements attached thereto that may change coverage or the answers provided.
My former employer is suing me, am I covered?
No, claims made by an employer against you where you are or were a salaried employee are excluded by the policy. There are two reasons for this exclusion. One, the employer’s Errors and Omissions (“E&O”) Policy should be the policy that responds to the errors of its employees. Two, businesses have good quarters and sometimes bad quarters. As an employed attorney, advice given immediately before a bad quarter may be the alleged cause of the downswing if there is an insurance policy present that may respond. You may want to make sure your employer has an E&O policy to protect against possible errors.
As you should expect, these Q&A scenarios are based on simple hypotheticals. Coverage determinations for an actual claim are ultimately based on the unique facts, applicable law, and the Terms, Conditions, Limitations, Exclusions, and Endorsements of your policy.
Carl Marsh, Esq.