As more and more sexual harassment and sexual assault claims come to light in all realms, including Hollywood, the judiciary and Congress, it is important to ensure that your business is prepared to manage any such allegations with adequate insurance coverage. This includes ensuring you have the proper insurance policies in place and that the exclusions of these policies do not bar coverage for these types of allegations.

These claims can arise in a number of ways. If your business is subject to the Florida Civil Rights Act of 1992 or Title VII of the Civil Rights Act of 1964, it could face a sexual harassment claim filed by an employee, alleging quid pro quo harassment, such as demanding a raise in exchange for a sexual act, or that there is a hostile work environment that interferes with the employee’s performance, including the making of constant, unwanted sexual comments. An employee may also bring a lawsuit directly against the alleged perpetrator or a director or officer of the company for a tort claim arising from the harassment or assault. Or alternatively, a customer or other third party may bring suit alleging negligent hiring or negligent retention if an employee sexually assaults or harasses him or her.