Employment Litigation And Insurance Coverage

Law360, New York (August 2, 2011, 12:18 PM EDT) -- For employers, protecting against unfair competition or enforcing a restrictive covenant or a nondisclosure, confidentiality, or separation agreement sometimes requires pursuing litigation against a former employee or their new employer. Affirmative litigation of this type can be protracted and expensive, and it is typically not covered by insurance.

But, when a defendant asserts a counterclaim — such as tortious interference, defamation, misrepresentation or invasion of privacy — a plaintiff-employer is placed in a defensive posture, and the counterclaims may trigger insurance coverage.

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