MICHAEL ABBOUD VS. NATIONAL UNION FIRE INSURANCE COMPANY OF PITTSBURGH, PA(L-680-14, MONMOUTH COUNTY AND STATEWIDE)

**What Happened** Michael Abboud sued his employer, National Union Fire Insurance Company, seeking insurance coverage for an employment-related legal dispute. Abboud wanted the company's Directors and Officers (D&O) insurance policy to cover his legal costs in a workplace conflict involving company insiders. **What the Court Decided** The court ruled against Abboud. Both the trial court and appeals court found that the insurance policy contained an "insured vs. insured" exclusion clause that specifically prevented coverage when company insiders sue each other. The court determined this exclusion clearly applied to Abboud's situation, so the insurance company did not have to pay for his legal costs. **Why This Matters for Workers** This ruling highlights an important limitation in workplace insurance coverage. Many companies have D&O insurance policies that exclude coverage for disputes between employees and the company itself. Workers should understand that if they have a legal dispute with their employer, the company's insurance may not cover the costs - meaning the company might be more willing to fight the case or the worker might face a company with limited resources to pay damages. Workers considering legal action should discuss insurance coverage limitations with an attorney.