Georgetown, TX asked in Civil Litigation for Texas

Q: Is a former employer required to represent you in a civil suit that you and them are named in?

Employee at the time of alleged incident. Another former employee is attempting to sue as they lost their unemployment case with Texas force commission. I was that employee direct supervisor at the time of their termination.

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1 Lawyer Answer
John Michael Frick
John Michael Frick
Answered
  • Frisco, TX
  • Licensed in Texas

A: It depends on the nature of the lawsuit and the substance of the employment agreement between the parties. In many instances, the former employer's insurance comes into play and the former employee falls within the definition of the "insured" or an "additional insured" in the policy.

Often, the defense counsel employed by the former employer's insurance company will represent a former employee. If the former employee falls within the definition, the former employee can demand a defense from the insurance company under the policy. But, in the absence of notice and a demand for defense from the former employee, the insurance company likely has no duty to defend the former employee and may have a policy defense to paying any damages because the former employee did not notify the insurance company and demand a defense. There are many cases that say that even if the insurance company knows about the lawsuit, it is not required to take any action until the "insured" party notifies it of the lawsuit and requests a defense.

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