Insurers' Broad Duty To Defend Employment Claims In Calif.

By Cheryl Sabnis (January 31, 2018, 12:32 PM EST) -- On Jan. 17, 2018, the Ninth Circuit issued a long-awaited ruling in the matter of PHP Insurance Service Inc. v. Greenwich Insurance Co., a declaratory judgment action between California insureds and their employment practices liability insurance (EPLI) provider involving a dispute regarding coverage for a putative class action asserting California wage and hour and related claims. This ruling affirms a 2015 summary judgment order by a California federal court, holding that while the wage and hour claims asserted in the complaint were not subject to a duty to indemnify, the EPLI insurer did have a duty to defend under California law. This ruling brings with it a helpful reminder to holders of EPLI policies not to shy away from tendering employment claims to their insurers....

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