Skip to main content
Home

Main navigation

News & Analysis Policies & Forms Your Library Attorney Network
News & Analysis Policies & Forms Your Library Attorney Network

User account menu

Sign in Get Started
x

You're signed out

Sign in to access subscriber actions.

Police quotas are ticket to liability

January 2024 employment law letter
Authors: 

Mark I Schickman, Schickman Law

Ordinarily, insurance policies don’t cover willful improper conduct by the insured. At the same time, if an employer retaliates against employees who blow the whistle on unlawful behavior, or who refuse to engage in unlawful behavior, that appears to be a willful act. Does that mean retaliation claims are uninsurable under California law? A court of appeal analyzed that question after an insurance company refused to indemnify against a retaliation claim.

Where there is willfulness, is there a way to insure?

California Insurance Code section 533 provides “an insurer is not liable for a loss caused by the willful act of the insured” Does that prohibit defense and indemnification for retaliation claims against employees who report activity they have reasonable cause to believe is unlawful, or for refusing to participate in activity that actually is unlawful?

This is an important question whose answer will influence enforcement of our employment laws because retaliation claims are the most common employment claims in California since 2016.

Can insurance company avoid wrongful termination liability?

Continue reading your article with a HRLaws membership
  • Sign in
  • Sign up
Upgrade to a subscription now
to get unlimited access to everything on HR Laws.
Start subscription
Any time

Publications

  • Employment Law Letter
  • Employers State Law Alert
  • Federal Employment Law Insider

Your Library Reading List

Reading list 6
Creating List 7
Testing

Let's manage your states

We'll keep you updated on state changes

Manage States
© 2025
BLR®, A DIVISION OF SIMPLIFY COMPLIANCE LLC | ALL RIGHTS RESERVED

Footer - Copyright

  • terms
  • legal
  • privacy