There are certain claims that require specialized types of insurance policies. In the paragraphs below, an Orange County employment law attorney looks at some of the issues that may not be covered under Worker’s Compensation or D&O insurance.

Directors and Officers Policies
This type of insurance protects a business’s executive officers against suits brought against them for administrative or professional misconduct. It does not normally insure them against such acts as sexual or other types of harassment as these issues do not usually fall within its purview. Although the D&O policy provides protection for the officers themselves, it may not extend its protection to the business as a unit with the exception of claims against the company concerning acts that affect the prices of its stocks, bonds or securities.

Coverage Issues under Worker’s Compensation
While physical injury resulting from accidents in the workplace is the main focus of Worker’s Compensation insurance and makes up the majority of claims, psychological pain and personal insult or mortification resulting from employers’ actions is not covered. Unless the claim falls within the legislative boundaries under which Worker’s Compensation must function, it is unlikely to be considered.

EPL Insurance
Neither D&O nor Worker’s Compensation normally cover claims such as harassment or other behavioral misconduct, and both insurers will point this out as if such a claim is filed. If an employer is to respond appropriately to or evaluate the merit of such claims, it should take the limitations of the aforementioned types of insurance into account and protect itself with insurance specifically intended to cover these issues.

For Help or Additional Clarification
If you require representation in an employment-related matter, contact Daily Aljian LLP by calling 949-861-2524 today.