Cracker Barrel Sues Insurer over Employment Discrimination Settlement

As previously discussed, the Cracker Barrel restaurant chain has been the subject of much scrutiny as far as its labor practices towards blacks and women.  This is also the company that once stated, it would hire only employees who displayed "normal heterosexual values which are the foundation of families in our society."

Now, it is apparently having some problems with its own employment practice liability insurers (via the Lexington Herald-Leader and AP):

Restaurant chain Cracker Barrel is suing two of its insurance carriers, claiming they did not reimburse the company after it settled sexual and racial harassment claims for $2 million.

The lawsuit filed last week in U.S. District Court in Nashville alleges Cincinnati Insurance Co. and Houston Casualty Co. violated their contracts.

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Cracker Barrel says it requested last March that the insurance companies settle the lawsuit for $2 million, but the insurers say that they weren't obligated to do so under policies signed with Cracker Barrel.

Whether or not Cracker Barrel's claim against the insurer company is valid, I'm sure these poor insurance companies just didn't realize what they were getting themselves into when they agreed to underwrite this risk.

PS