I own a small business. I found out my warehouse manager was carrying a concealed pistol at work against company policy. I fired him. Now he is suing me for “Wrongful Termination” and violating his 2nd Amendment rights. Does my business insurance cover this lawsuit?
Key Takeaways
- Employment Practices Liability Insurance (EPLI): This is the policy that covers wrongful termination suits. However, it typically covers discrimination (race, sex, age). Firing for policy violation is standard, unless state law protects the employee’s right to carry.
- “Parking Lot Laws”: Many states (TX, FL, OK) have laws stating you cannot fire an employee for having a gun in their locked car. If you fired him for a car gun, you broke the law, and EPLI might deny coverage for your illegal act.
- Inside the Building: In most states, private employers can ban guns inside. Firing him for carrying inside is usually legal and defensible.
- The “Public Policy” Tort: The employee is suing on the grounds that his firing violates public policy (Self-Defense). Courts are split. EPLI should defend you until a judgment is made.
The “Why” (The Trap)
The trap is “State Labor Laws.”
There is no federal protection for gun owners. But state laws vary wildly. If you operate in multiple states, a blanket “No Guns” policy might be illegal in some.
Your EPLI policy has exclusions for “Violations of Statute.” If you violated a Parking Lot statute, they won’t pay.
The Investigation (I Asked HR Consultants)
- Best Practice: “Prohibit weapons in the building. Allow them in locked cars (to be safe with state laws).”
- Insurance: “Check your EPLI retention (deductible). It’s usually $5,000 or $10,000. You will pay that first.”
Comparison Table
| Scenario | Legality of Firing | Insurance Coverage |
| Gun in Locked Car (Red State) | Illegal (Usually) | Denied (Illegal Act) |
| Gun in Locked Car (Blue State) | Legal (Usually) | Covered |
| Gun on Waistband (Inside) | Legal (Policy Violation) | Covered (Defensible) |
Step-by-Step Action Plan
- Review the Handbook: Does your employee handbook explicitly say “No Firearms”? If not, he has a stronger case for “lack of notice.”
- [IMAGE: Screenshot of an Employee Handbook ‘Weapons Policy’ page]
- Consult Labor Counsel: Before firing, ask a lawyer: “Does this state have a Parking Lot Law?”
- Document the Violation: Did he brandish it? Did he just print? Document the safety risk. Firing for “Safety Violation” is stronger than “Gun Violation.”
FAQ
Can I get a discount on insurance for banning guns?
Sometimes. Workers Comp carriers might prefer a gun-free workplace.
What if he was a CCW permit holder?
Doesn’t matter inside your private business (in most states). You set the rules.