Coverage Question Series – Part 35
Post on December 28th, 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-1s (effective for all policies new or renewed as of May 1, 2018). Refer to your specific policy and any endorsements attached thereto that may change coverage or the answers provided here.
My former employee sued me for sexual harassment, am I covered?
No, not under the LPL Policy. I am going to avoid using a pun for this topic; it is far too touchy of a subject. Sexual harassment is more likely in occupations where there is a significant power inequality in the business organization and a high stress environment. Law firms commonly meet both of those factors.
The first coverage issue is that sexual harassment does not arise out of providing “Professional Services” to others. In addition, the policy also specifically excludes “any “Claim” based upon or arising out of any actual or alleged discrimination or actual or alleged sexual harassment by the Insured.” LPLP-1s (05-2018), Excl. (m).
Although the OBLIC LPL Policy excludes claims of sexual harassment, the OSBA Insurance Agency now offers Employment Practices Liability Insurance (EPLI) policies to respond to such claims. Call Tammy and Danna at 614-572-0616 to discuss the options and coverage for EPLI.
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.
To address a concern for the Coverage Email 34, 12/21/2018, policy coverage for matters involving “Advertiser’s Liability” that is not related to “Professional Services” rendered to a client of the policyholder, only includes defense coverage and does not provide any indemnity coverage.
Carl Marsh, Esq.