Insurer released from Potbelly’s coverage claim - Business Insurance

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Insurer released from Potbelly’s coverage claim - Business Insurance Skip to content Register for free Search Search Log In Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Insurer released from Potbelly’s coverage claim by Richard Sine D&O , Employment Practices Beazley Mar 20, 2026 Potbelly can’t claim coverage under its management liability with Beazley for claims arising from the sandwich chain’s alleged failure to post salary information for job applicants in Washington state, a federal judge in Seattle ruled. In Potbelly Corp. v. Beazley Insurance Co. U.S. District Judge Ricardo Martinez on Thursday found that the underlying lawsuit against Potbelly — a putative class action filed in King County Superior Court in June 2024 — did not allege the kind of discrimination that the Beazley policy covered. Potbelly was accused of violating the Washington Equal Pay and Opportunities Act, which requires employers to provide wage and salary information to job applicants. Potbelly sought defense and indemnification under its Beazley Execuguard management liability policy, which covered losses from wrongful acts, including discrimination, defined as an adverse or differential employment action taken because of a protected characteristic such as race, sex, age, or disability. Beazley denied coverage. Potbelly ultimately settled the underlying class action and then sued Beazley for breach of contract seeking to recover the settlement amount, defense costs and interest. Potbelly argued that any violation of the Equal Pay and Opportunities Act counted as discrimination. It noted that the legislature had stated its intention to combat gender-based wage disparities when passing the law. Judge Martinez agreed that the law was drafted to combat discrimination. “However, the underlying action itself does not allege that Potbelly engaged in discrimination as defined in the Policy,” he wrote. “The underlying action does not allege that Potbelly refused to hire members of the class because of membership in a protected class or any other basis … The underlying action does not allege that Potbelly engaged in any adverse employment action because of anything,” he said, dismissing the case. Enacted in 2023, Washington’s pay transparency law had already resulted in about 250 lawsuits by early 2025, according to news reports. Potbelly did not respond to a request for comment. 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