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Thou Shalt Not Slander

Workplace insurance may not foot the bill of a defamation lawsuit.

By Susan Massman | Updated on August 21, 2015
While Abraham Lincoln may have said, “Truth is generally the best vindication against slander,” many also gain some satisfaction by filing a defamation suit.

When defamation occurs in the workplace, insurance may or may not foot the bill if the company is sued. Sometimes coverage hinges on whether the defamed claimant was considered an employee or if the defamation occurred in an employment situation.

For instance, in Peerless Indem. Ins. Co. v  Moshe & Stimson LLP, 22 N.E. 3d 882 (Ind. App. 2014), an attorney sued her former law partner for defamation. Moshe and Stimson were a sister-brother law partnership, and after Moshe told Stimson that she intended to leave the firm, Stimson—among other unbrotherly things—began making negative statements about Moshe’s integrity and competence, so she filed suit against him for defamation.

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