Monday, January 12, 2009
As most practicing labor lawyers know, employers often carry discrimination insurance. Often times, policies require that the carrier be notified even before a formal lawsuit is filed. The failure to notify the carrier can be fatal to any claim for insurance as the D.C. Circuit recently recognized in American Centr v. Federal Ins. Co., ___F.3d___(D.C> Cir. Dec. 5, 2008).
In this case, the insurer denied coverage because it was only notified after the suit was filed. The insurance carrier was required to be notified when the employee filed charges with the EEOC. This was a relatively easy case for the court. The policy defined a claim as a "formal administrative or regulatory proceeding" and the court found that EEOC proceedings were formal.
Mitchell H. Rubinstein