The question of the month deals with employment practices liability coverage. Employment related practices liability claims arise when employees (and former employees) file actions against the employer for unlawful hiring, firing, and other employment practices. These claims are costly, not only in dollars, but also in lost hours spent in reviewing files and interviewing witnesses.

Insured employers need to know which workplace practices and procedures to implement so as to protect themselves from employment practices liability claims. Moreover, since the government is very much involved in this field through laws regulating employment decisions based on race, religion, age, disability, sexual orientation, gender, and other protected categories, employers need to know what the state laws are concerning employment practices.

For information on strategies that risk managers can use to prevent employment practices liability claims, and for a state-by-state listing of state laws on the subject, link onto the designated article in the Bulletins.

The cases discussed in the Dec Page are from Ohio, Massachusetts, Wisconsin, and Idaho . The Ohio case is about uninsured motorists coverage and whether the driver of a motorcycle can be considered an insured person. A claims-made policy is analyzed for possible coverage in the Massachusetts case; the key point here is (as is usual with a claims-made policy) when was the claim made.

In the Wisconsin case, the meaning of occurrence comes to the fore; if the alleged damage was caused by an occurrence, the insurer had a duty to defend. The final case discusses the issue of whether the insurer is entitled to reimbursement of defense costs. Here, the insurer filed a declaratory judgment action to establish whether it had a duty to defend and indemnify the insured. After it was determined that there was no duty, the insurer wanted reimbursement of the defense costs it had already expended on behalf of the insured.

Questions and Answers

When an insured dies and the estate doesn't notify the carrier, how is coverage for a loss handled? See Deceased Insured and Coverage for Remaining Property. When a mold claim occurs and the policy contains a fungi endorsement, water back-up becomes a covered peril. See Fungi Endorsement Application. How is the homeowners co-insurance penalty calculated? See Homeowners Co-insurance Penalty.

In the event of a partial loss to property, matching can become an issue. See Matching. Are personal medications considered to be personal property? See Medications Considered to be Personal Property.

Valued Policy Laws

The valued policy laws discussion has been updated this month to reflect changes in the status of valued policy laws in the United States , including a discussion of recent case law dealing with the issue. See Valued Policy Laws.