Below is an excerpt from Marsh's FINPRO Insights Newsletter, a ...

Finally, purchasing a stand-alone EPLI policy from Bermuda perhaps offers the most assurance
that punitive damages would be eligible for coverage (subject to all other terms and conditions of
the particular policy), because such damages are automatically included in the policy. Similar to
the puni-wrap, stand-alone EPLI policies purchased in Bermuda are not subject to U.S. insurance
regulations.
Punitive damages remain the single largest exposure facing companies in EPL cases, with such
damages being awarded in nearly 20% of all cases that proceed to trial. These damages are also
often a factor in the settlement of cases, thus driving up the settlement value. Therefore, as the
current economic conditions continue to contribute to an increase in frequency and severity of
EPL claims, obtaining insurance coverage for punitive damages, to the extent permitted by law, is
of paramount importance.
Marsh will host a seminar on Employment Practices during Difficult Economic Times on
November 4. Adeola Adele will be a panelist at this seminar. If you are interested in
learning more, please contact Leah Ohodnicki at Leah.E.Ohodnicki@marsh.com or 412-
552-5253.