Will EPLI Cover a Lawsuit from an Ex-partner?

[bphillips]

I have a client that has an EPLI endorsement on his BOP with us. The company is an LLC with 4 members. One of the members (owns 25% of the LLC) is not cutting it. The remaining 3 want to vote to fire the member, forcing him to sell his shares per the partnership agreement. However, the three remaining partners are concerned the outgoing partner may sue them claiming some form of discrimination.

Would their EPLI policy cover this kind of lawsuit? It seems the definition of "employee" on the forms I have read are a little vague. My initial thought is "no, it would not be covered". Curious if anyone else has a different opinion.

 

[tpowell138]

I would suggest calling the UW phrasing a hypothetical question.

Directors and Officers would be more suitable. Have you asked for a copy of their partnership contract?

If they are following the rules everyone agreed upon doesn't sound like he/she has a solid case to sue.