What Is a Wrap-Around Insurance Program?

A wrap-around insurance program is a policy that provides punitive damages coverage for employment practices liability claims. Should a legal recompense in excess of compensatory damages be awarded to a plaintiff to punish a defendant and deter them from committing future punitive actions, this form of 澳洲幸运5官方开奖结果体彩网:insurance will help to cover those costs.

Understanding a Wrap-Around Insurance Program

A wrap-around insurance program is also referred to as a wrap-around policy because it is set up in conjunction with an 澳洲幸♓运5官方开奖结果体彩网:Employment Practices Liability Insurance (EPLI) policy. EPLI insures against claims f♚rom employees that employers have violated their rights. Eligible claims for such lawsuits can range from any form of discrimination to wrongful termination.

The most common award from these types of lawsuits is punitive or monetary damages. These are usually issued to cover a range of needs, including 澳洲幸运5官方开奖结果体彩网:medical costs, loss of income, and pain and suffering.

Employers carry EPLI policies to cover the costs they could incur if legal action is pursued. If an employee feels that 澳洲幸运5官方开奖结果体彩网:workers' compensation does not adequately cover their loss—perhaps because they feel their employer’s negligence causeꦛd th🦄eir injury—they may decide to sue their employer for punitive damages such as pain and suffering.

EPLI addresses this risk and is designed to cover expenses not protected by workers' compensation or general 澳洲幸运5官方开奖结果体彩网:liability insurance: a mainly mandatory form of insurance that provides some level of coverage for medical expenses and lost wages for employees or their beneficiaries when injured, falling sick, or killed as a ♌result of their job.

Types of Wrap-Around Insurance Programs

There are other instances of the term wrap-around insurance being used that do not include employee versus employer interactions. These include secondary or ancillary insurance policies for healt𒀰h and life insurance coverages, when a singular policy does not meet current needs or is not estimated to meet future needs.

Another form of a wrap-around insurance program is also employed to protect against 澳洲幸运5官方开奖结果体彩网:political risk. Companies may take out this type of policy to shield themselves in the event that a foreign government engages in activities that cause it a financial loss. Under this category of wrap-around insurance, protection is provided for deprivation, acts of government, embargo, sanction, partial loss, and forced abandonment.

Special Considerations

Punitive cases fall under the 澳洲幸运5官方开奖结果体彩网:civil court’s jurisdiction. And while there is still a defendant, there isꦫ no prosecutorౠ, as there is during a criminal case. 

The plaintiff is usually seeking restituti🅘on for a financial loss of some sort and must hire an attorney to act on their behalf and provide counsel. Defendants in criminal cases, on t𝐆he other hand, can request an attorney at a cost to the state if they cannot reasonably afford one.

Furthermore, with a civil case, there is no threat of jail time or a criminal conviction. There’s usually no jury, either—most civil cases are tried and decided solely꧙ in front of a judge.