Understanding Insurance Coverage for Workplace Discrimination and Harassment Claims
If you’ve experienced employment discrimination or sexual harassment in the workplace in New York, you might wonder who is financially responsible when a legal claim is filed. The answer is often more complex than it seems—and it might not be the employer footing the bill directly.
Many businesses today carry Employment Practices Liability Insurance (EPLI). This type of coverage is specifically designed to protect companies from claims related to discrimination, harassment, wrongful termination, and other employment-related issues.
In New York, where workplace protections under both state and city laws are particularly strong, having this kind of insurance is not only common but often necessary. If an employee files a claim alleging workplace discrimination or sexual harassment, the company’s insurance may step in to cover the legal costs and any potential settlement or judgment.
However, there are important exceptions. Insurance policies typically do not cover intentional or egregious acts, especially when the behavior is extreme or clearly violates public policy. In such cases, the insurer may deny coverage, arguing that the conduct falls outside of what the policy was designed to protect.
So what does that mean for someone filing a claim?
- Sometimes, compensation comes from the employer’s insurance company.
- Other times, it may come directly from the business itself.
- In some cases, it could be a combination of both.
Every situation is different, and insurance policy language can be complex. If you’re unsure whether a business is insured for this kind of claim—or how it might impact your case—it’s a good idea to consult an attorney familiar with New York employment law.
Have questions about workplace discrimination or harassment claims in New York? Feel free to reach out to learn more about your rights and options.