The attention-grabbing headlines surrounding the $250 million punitive damage award in the gender discrimination lawsuit against Novartis has triggered renewed interest by risk managers in the availability and insurability of punitive damages under employment practices liability insurance.
As with most litigation, only a small percentage of the thousands of employment claims filed every year ultimately make it to a jury. Most settle long before that point, but those that do reach a jury have a higher likelihood of a punitive damage award, because of the often inflammatory nature of the allegations made in these cases.
Unlike most insurance contracts, EPLI policies are designed in part to provide protection from damages caused by intentional conduct, such as discrimination, harassment or retaliation, which prompts the jury awards of punitive damages.
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
