An insurer had a duty to defend a company’s chief executive and its 401(k) plan for reclassifying an employee as an independent contractor after she complained a second executive was sexually harassing her, a federal appeals court has ruled.

Jada Scali sued in the Northern District in 2011, claiming Michael Ladd, chief executive officer at safety products company Euchner-USA, and the company’s 401(k) plan violated the Employee Retirement Income Security Act (ERISA) because she lost her benefits after Ladd allegedly forced her out as a regular employee.