Liability Defense Reimbursement

Pays legal defense costs and those administrative proceedings associated with police investigations and criminal prosecutions directed against people covered by your policy.

How does this benefit your organization?

  • Protects your organization from costly legal expenses resulting from specified lawsuits or criminal investigations against your organization, its leaders, or employees.
  • Pays for necessary legal defense costs for covered persons within your organization.

What does this coverage offer?

Reimburses defense costs for specified lawsuits and law enforcement inquiries- not covered elsewhere in the policy- against those within your organization up to the following limits:

  • $50,000/legal proceeding; $100,000 aggregate for all legal proceedings during the policy period.
  • $10,000/inquiry; $30,000/aggregate for all law enforcement inquiries during the policy period.
  • $175 per hour for legal fees.

This optional coverage pays for legal fees, costs, and expenses directly related to lawsuits that involve:

  • Employee or job applicant claims of emotional injury or alleged discrimination.
  • Alleged character defamation claims by an employee or job applicant.
  • Employee claims of bodily injury not covered by Workers’ Compensation.
  • Wrongful Termination or discipline not included in other coverages.
  • Sexual acts or harassment alleged by an employee.
  • Financial damages involving leadership errors or omissions, breach of contract, or property disputes.
  • Allegations of improper administration of an employee benefits plan.

Example of Claims Covered

Breach of Contract: An organization enters into a construction contract with a developer to build a large addition to the existing facility. Upon completion of the project, the organization is dissatisfied with the job and refuses to pay the developer. The developer sues for breach of contract.

Criminal Defense: A pastor in a church failed to report a case of potential sexual abuse of a minor because information was disclosed to him during a confession by a parishioner. The pastor thought he was not allowed to report the incident because of the clergy-penitent privilege. As a consequence, the pastor was charged under law requiring such a report. He retained legal counsel to respond to the criminal charges.

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