This is a list of hypothetical questions and answers intended to summarize key coverage features generally available. Please review the policy and endorsements for specific coverage details.


What is the correct process for reporting a Claim?

Immediately report all lawsuits, summons, claims and EEOC incidents to the following location:

Attention: Denese Davis
14643 Dallas Parkway, Ste 770
Dallas, TX 75254
Phone: 972-383-7186
Fax: 972-383-7171
Email: proclaimnewnotices@axaxl.com


Are back wages sub-limited on your policy?

Back wages and front wages are included in our definition of Loss and are not sub-limited.

What is the difference between sexual harassment and sexual abuse/molestation?

Sexual harassment is a form of sex discrimination that violates Title VII of the Civil Rights Act of 1964. Unwelcome sexual advances, requests for sexual favors and other verbal or physical conduct of a sexual nature constitutes sexual harassment when submission to or rejection of this conduct explicitly or implicitly affects an individual’s employment, unreasonably interferes with an individual’s work performance or creates an intimidating, hostile or offensive work environment. Claims for sexual harassment are addressed in the Employment Practices Liability section of our Public Officials and Educators policies.

Sexual abuse, also referred to molestation, is the forcing of undesired sexual behavior by one person upon another, when that force falls short of being a sexual assault. We consider sexual abuse to be bodily injury so these claims should be referred to the insured’s General Liability carrier.

What is Third Party EPL?

Employment Practices Liability generally covers three basic types of claims — wrongful discharge, unlawful discrimination and unlawful harassment. With most EPL wordings, the “wrongful act” must arise from a “wrongful employment practice” as defined in the policy and the claim must be made by an “employee”.

We also are providing additional coverage to the EPL section of the policy — third party coverage, which extends the universe of potential claimants to include anyone (generally business invitees such as customers and vendors as opposed to trespassers) who have reason to be on the insured’s premises. All that is required for a third party to bring a claim is harassment, coercion or discrimination of the third party by the insured. No employment relationship need exist between the claimant and the insured.

Please explain what I get from the Workplace HELPLINE.

The following Workplace HELPLINE services are available at no cost to all policyholders when EPL coverage is provided:

  • Toll-free phone assistance regarding human resource and employment law questions such as hiring and firing, drug and alcohol testing, FMLA, ADA and harassment and discrimination;
  • Online Resource Website www.darwinhelpline.com;
  • Monthly HR Express Updates and HR Alerts to keep policyholders informed of continuously changing state and federal workplace regulations; and
  • Free, unlimited access to experienced employment attorneys.


What is the difference between a Retroactive Date and a Prior Pending LItigation Date?

Retroactive Date: Under a claims-made policy, any damages or injuries that occurred prior to this specified date will not be covered by this policy.

Prior & Pending Litigation Date: An exclusion that precludes coverage for claims from litigation that was pending prior to the inception of the policy or the specified date if different. The intent is to avoid continual exposure as the claimants expand allegations to include entities rather than just individuals.

What is Hammer Clause and why is yours better than most?

Under the Consent to Settle clause, the carrier agrees that they must get the consent of the insured to settle a claim. The carrier, however, then stipulates via the “hammer clause”, that, should the final settlement exceed the original settlement sought by the carrier, the insurer will be responsible later for any amount that exceeds the amount for which the claim could have been settled.

In our policy, as a benefit to the insured, the carrier agrees to co-insure 50% of the amount exceeding the original settlement amount, thereby mitigating some of the exposure created by the hammer clause.

Do your Public Officials and Educators policy forms offer “Side A’ coverage?

A typical D&O policy forces coverage into “Side B” (corporate indemnification) for all claims unless the Director or Officer is not indemnified (under state law or because of financial issues with the organization), in which case the “Side A” applies. Our Public Officials and Educators policy forms (which include D&O, E&O, and EPL) do not start with the same premise of forcing the organization to indemnify the Director or Officer if allowable under state law.

Instead, our policy provides its coverage to all insureds — Directors, Officers and all employees — directly via application of Coverage Part I — and this includes providing coverage directly to any Director or Officer as a defined “Insured”. (Our forms do not provide coverage to the Director or Officer “on behalf of the organization”, as provided in a standard D&O policy).

Also, our coverage is “duty to defend” and, since we “pay on behalf” of the Director or Officer directly rather than paying on behalf of the insured organization, the Director or Officer does not have to wait for their organization to determine if the claim is indemnifiable under their bylaws or state law and they do not have to worry about the financial strength of their organization. It’s like getting Side A coverage right from the start.


Is moonlighting covered?

Yes, moonlighting coverage is available except for activity in bars or taverns.