A wrap-around insurance program is a critical part of an employer's employment practices liability insurance. The program provides employers and employees protection from a wide range of employment-related lawsuits and claims. This protection includes claims related to wrongful termination, discrimination, and sexual harassment, as well as other labor-compliance related challenges.

The wrap-around policy provides coverage for punitive damages that exceed the limits of an EPLI policy. Punitive damages are extra-compensatory damages that are awarded to a wronged party as punishment for an intentional and malicious act of the defendant. Due to the severity of these damages, they can be quite expensive and difficult to get approval for. This is where having a wrap-around policy comes in handy. It ensures the employer and its employees can be protected against any punitive damages awarded by the court.

Because of the nature of punitive damages, employers often face a greater risk of than they can afford. This can be risky because, in some cases, punitive damage awards are higher than the limits of the EPLI policy. With the wrap-around policy in place, employers can be sure that any punitive damage awards that exceed the EPLI policy’s limits will be covered.

In addition to providing punitive damage coverage, a wrap-around policy also includes legal services for the employer. This covers the costs associated with defending the employer in court if a wrongful practice is alleged, as well as costs for settlement of the claim if an unjustified settlement has to be paid out.

Overall, a wrap-around insurance program is essential for employers looking to protect their business interests. It is vital to understand how a wrap-around policy can benefit your business and what types of coverage you require. By doing so, employers can make informed choices and get the right protection to ensure that their business is effectively covered against any and all potential claims.