The U.S. District Court for the Northern District of Texas has dismissed a lawsuit filed by an employer against its employment practices liability insurance company because the employer didn’t tell the insurer about an EEOC complaint right away.
The policy, issued by Executive Risk Specialty Insurance, was a claims-made policy that required the employer to notify the carrier within 60 days of a claim. When an employee filed an EEOC complaint, the employer didn’t tell the insurer. After the employee got the EEOC go-ahead and filed a federal discrimination lawsuit, the employer finally called the insurance carrier.
That was too late.
Final note: Check with your insurance carrier about your obligations. Make sure you know when and how to report possible employment discrimination complaints. It doesn’t make much sense to purchase insurance and then miss the opportunity to use it.