MCIT Coverage for EEOC/MDHR Complaints and Discrimination Suits

MCIT provides members liability coverage for unintentional wrongful acts committed by a member and includes coverage for a complaint to the Equal Employment Opportunity Commission (EEOC) or Minnesota Department of Human Rights (MDHR), as well as a suit against a member for discrimination or violation of civil rights. How coverage applies may evolve as a claim progresses.

Under both circumstances, MCIT reviews the claim to determine if coverage applies to the specific circumstances. If it does, MCIT assigns defense counsel to represent the member.

EEOC/MDHR Formal Complaint

In an EEOC/MDHR complaint, the attorney provides a response to the complaint and assists the member in any subsequent investigation by the EEOC/MDHR.

Usually there is no monetary component to an EEOC/MDHR complaint. The agency is only investigating the complaint to determine if probable cause of discrimination exists. Once the investigation is complete, the complainant can pursue a lawsuit for any claims he or she has against the member, including damages.

Discrimination, Violation of Civil Rights Suit

When a member is sued for discrimination or a violation of civil rights, whether following an EEOC/MDHR investigation or not, MCIT coverage will pay sums the member becomes legally obligated to pay as damages caused by unintentional wrongful acts committed by the member.

These lawsuits typically involve a variety of demands, such as lost wages and benefits, emotional distress or embarrassment, a change in the member’s policy and procedures or training. Some of these demands are covered by MCIT and some are not.

As such, MCIT usually accepts these claims with a reservation of rights. This means that MCIT provides coverage and defense as long as the claimant is demanding covered damages. The intent is to obtain a successful resolution or settlement.

It is important for members to understand what is excluded under MCIT coverage. Examples are noted in the sidebar, and all exclusions are detailed in the MCIT Coverage Document. If a member agrees to a settlement or the court finds the member liable, MCIT will pay damages that are covered under the coverage document. Those that are excluded would be the member’s responsibility.

If during the course of the suit, the claimant drops covered demands, then MCIT’s obligation to provide coverage ends. At that point the member becomes responsible for its continued defense. As there are no longer any covered demands, any resultant damages or nonmonetary relief would therefore be the member’s responsibility.