Union leaders perform a valuable mission to improve
the lives of working men and women, but this difficult
job carries high personal risk. Union leaders face
professional liability lawsuits brought by members,
employees and regulatory agencies. If accused of
dishonesty or personal wrongdoing, a union leader
may be personally responsible for all of his or her
legal defense costs until proven innocent.
1. EMPLOYMENT PRACTICES/SEXUAL HARASSMENT
A female union employee alleges that she is subjected
to a hostile work environment when her male co-workers
display professionally inappropriate pictures around the
office. Her supervisor fails to address the situation after
repeated offenses. As a result, the employee files a
lawsuit against her union employer for sexual harassment,
sexual discrimination and a hostile work environment.
The lawsuit settles before trial for over $300,000, and the
union’s attorney’s fees exceed $100,000.
2. EMPLOYMENT PRACTICES/WRONGFUL TERMINATION
AND DISCRIMINATION
A union organizer of twenty years alleges that she was
wrongfully terminated and replaced by a candidate with
less professional experience. The former organizer files a
lawsuit against the union seeking over $5 million in damages
for wrongful termination from employment and racial
discrimination. The claim settles before trial for $250,000.
3. DUTY OF FAIR REPRESENTATION
A union member is terminated by his employer following
a drug-related criminal arrest. After the criminal charges
are dropped and the member’s criminal record is expunged,
the union member’s employer fails to reinstate him to his
prior position. The member requests that his union file a
wrongful termination grievance against his employer. The
union inadvertently misses a deadline during the grievance
process, which causes the grievance to be dismissed. The
union member, in turn, files a lawsuit against the union
claiming breach of duty of fair representation and seeks
damages, including lost wages and front pay. The court finds
the union liable for breach of its duty of fair representation
and awards over $300,000 in damages caused by the
union’s negligence.
4. PERSONAL INJURY
A union officer files a lawsuit against his union employer alleging
that he was forced to leave his job and that his reputation
suffered irreparable harm as a result of defamatory statements
about him in a union publication. The lawsuit alleges defamation,
libel and slander charges against the union. The parties settle
the lawsuit for $500,000. The additional cost of defending the
union is close to $400,000.
5. FINANCIAL MANAGEMENT
Union leaders are responsible for properly managing and
protecting the financial assets of their union organizations
and face liability for the mishandling of these assets. When a
union is accused of inappropriately managing members’ dues,
the union can face lawsuits from its members and possible
bankruptcy. If a lawsuit is filed, the union is responsible for
paying the defense costs and any settlement charges.
6. ILL/CONFLICT OF INTEREST
An internal review board files charges against a local union’s
official alleging misappropriation of funds in connection with
an election campaign. The union official is personally responsible
for covering his own defense cost. The ILL endorsement
provides defense cost protection for the official.
7. ILL/PERSONAL PROFIT
An internal review board charges a union official for accepting
monetary kickbacks in association with an attempt to impose a
substandard collective bargaining agreement which would cause
union members to receive less pay and benefits. The union official
is personally responsible for covering his own defense cost. The ILL
endorsement provides defense cost protection for the official.
8. JATC/EDUCATOR’S LIABILITY
JATCs have risk exposures when their graduates utilize
their job and safety training in the workforce. If someone
files a lawsuit against those graduates, that suit may name
the entity which provided the initial training and claim that
the JATC failed to properly educate its students. Educator’s
liability provides coverage such as reimbursement of
defense costs, damages, judgments and settlements for
that exposure.
9. JATC/DISCRIMINATION
Third party discrimination coverage is available, which is
important protection for JATCs during their student selection
process in case students or prospective students file
charges. For example, if a JATC does not choose a female
prospective student to enter training that is particularly
rigorous and instead chooses all male students, the female
prospective student may accuse the JATC of sexual
discrimination.
10. PERSONAL LIABILITY EXPOSURE
Ullico Casualty protects unions and their individual labor
leaders from these exposures and many others related to
managing a union organization. Coverage for defense,
settlement and appeal are built into our Union Liability
policy. We understand unions’ needs because we know
unions, and we are committed to treating our policyholders
with respect. As a union leader, you have personal
liability exposure and need Union Liability insurance
protection. Choose the risk solutions provider for
the union workplace.
Union Liability insurance is available through authorized Ullico insurance brokers such as Union Services Agency. Contact us to find out more about Union Liability Insurance.
Please note that the above are sample union liability insurance claim scenarios. Please note that the following scenarios are descriptive only and does not constitute a part of, or endorsement to, the policies. The claim scenarios provided are for illustration only and are not a guarantee of coverage.
Reprinted with permission by Ullico, Inc.
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