None
EN
SHRM’s insurance carrier says it’s not on the hook for $10M jury verdict
['Kate Tornone', 'Lead Editor']
HR Dive - Latest News
Twin City, a subsidiary of Hartford Fire Insurance Co., said it should not be required to indemnify SHRM for the $10 million award because the jury found the HR organization engaged in intentional race discrimination and retaliation.
In Virginia, where SHRM is headquartered, state law prohibits the insuring of punitive damages awarded for intentional acts, the insurance company argued.
It said it made that clear to SHRM when it first agreed to defend the organization against the race bias claim, Mohamed v. SHRM, and afterward.
A jury late last year awarded her $1.5 million in compensatory damages and $10 million in punitive damages, finding that the organization discriminated against her based on her race.
“The parties have been unable to reach agreement regarding responsibility for funding the punitive damages award, should it be affirmed on appeal,” the insurer said in its complaint.