Shops and Retailers: What Could Go Wrong?

A dispute involving ownership of a fine arts retailer resulted in a former employee alleging wrongful termination, along with claims of breach of fiduciary duty, legal malpractice, conversion, fraud, fraudulent inducement and breach of contract. The matter has not settled, but  approximately $65,000 has been spent in defense costs.


A former salesperson alleged race and disability discrimination. The lawsuit included allegations that the company tolerated racial slurs, including supervisor participation. The claimant retained an aggressive trial attorney. Parties settled at mediation and a settlement payment of $350,000 was made, with an additional $56,500 in defense costs.


A former employee filed suit alleging he was subject to ongoing harassment by a supervisor, which culminated in him being accused of stealing in front of other employees and customers. The suit alleged causes of action for assault, defamation, false imprisonment and infliction of emotional distress.


A small retailer was sued for pregnancy discrimination by an employee. The actual discrimination seemed unsupported by the produced facts, however, the retailer’s practices were of concern. The claimant filed suit, but the claim was resolved through negotiation for $12,250, with an additional $1,250 in defense costs.



Our team of experienced underwriters, dedicated claims handling unit and technical support staff understands the unique management lability exposures depicted above and can help tailor a policy to find acceptable coverage and claim solutions for your clients!