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Labor/Employment,
Insurance,
Alternative Dispute Resolution

Apr. 23, 2025

Insurance for employment disputes: Know what's covered before negotiating

See more on Insurance for employment disputes: Know what's covered before negotiating

Employers rely on their risk management teams to evaluate and acquire insurance coverage, but unless they know the key features of their policies, they may be left holding the bag during settlement negotiations.

Insurance for employment disputes: Know what's covered before negotiating

Consider a typical employment dispute: Plaintiff has asserted a claim for wrongful termination and retaliation; the employer hopes to resolve the matter expeditiously in mediation. The final settlement should be covered by its Employment Practices Liability Insurance (EPLI). Correct?

Oops! As negotiations begin, the employer realizes that it may be the one paying some or all of any final settlement. It had mistakenly assumed that its policy would cover these types of damages even t...

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