Wrap-Around Insurance Program

DEFINITION of 'Wrap-Around Insurance Program '

Provides punitive damages insurance for employment practices liability claims. A punitive damage is intended to punish a defendant and deter them from not committing an offense again. Punitive damages are meant to cover medical costs, unearned income due to missed work, pain and suffering, and emotional distress, among others. In essence, this insurance protects the policyholder and helps them cover costs related to punitive damages. The validity of this type of insurance has not been tested in court.

BREAKING DOWN 'Wrap-Around Insurance Program '

Also referred to as a wrap-around policy because they "wrap around" the EPLI (employment practices liability) insurance. The EPLI insurance covers employers from claims made by workers who have sued the company for violating their legal rights as employees. These lawsuits could include claims for sexual harassment, breach of employment contract, wrongful termination, discrimination and failure to hire or promote.

RELATED TERMS
  1. Punitive Damages

    Legal recompense that is levied as punishment for a wrong or ...
  2. Civil Damages

    Civil damages are usually monetary awards due to a winning plaintiff ...
  3. Liquidated Damages

    Present in certain legal contracts, this provision allows for ...
  4. Insurance Claim

    A formal request to an insurance company asking for a payment ...
  5. Collateral Source Rule

    A common law rule of evidence pertaining to punitive or other ...
  6. Contractors' All Risks (CAR) Insurance

    An insurance policy that provides coverage for both damage to ...
Related Articles
  1. Personal Finance

    Protect Your Company From Employee Lawsuits

    Understanding employment practices liability insurance is easy, once you know the basics.
  2. Personal Finance

    Filling The Gaps In General Liability Insurance

    Standard liability coverage may not be enough. Special needs call for specialized policies.
  3. Personal Finance

    Do You Need Umbrella Insurance For Household Help?

    Homeowners insurance may not be enough – say, if your nanny sues for damages after an accident. That's where umbrella coverage comes in.
  4. Personal Finance

    Do You Need Casualty Insurance?

    Find out how different types of coverages can protect you and which policy is right for you.
  5. Personal Finance

    Cover Your Company With Liability Insurance

    Every business is susceptible to legal action. Find out how to protect yours.
  6. Personal Finance

    Understanding Insurance Claims

    An insurance claim is a formal request made to an insurance company that asks for a payment based on the terms of the policy.
  7. Personal Finance

    Insurance Coverage: A Business Necessity

    Don't go to work without this policy in place - especially if your work is in your home.
  8. Financial Advisor

    What Kind of Insurance Do RIAs Need?

    Advisors spend a lot of time discussing insurance with clients but they also need to consider their own coverage needs as small-business owners
  9. Personal Finance

    The Importance Of Property Insurance

    Property insurance is important, but there's a lot you need to learn in order to get the proper coverage.
  10. Financial Advisor

    An Advisor's Guide to Prof. Liability Insurance

    A guide to what financial advisors need to know about professional liability insurance.
RELATED FAQS
  1. Does renters insurance cover water damage?

    Learn how renters insurance provides personal property coverage for items damaged by water only if the water is the result ... Read Answer >>
  2. Can your insurance company cancel your policy without notice?

    Learn about your rights as an insured when it comes to your insurance policy being canceled, including how to access your ... Read Answer >>
  3. Suppose my garage collapsed onto my car. Are damages covered by my home insurance ...

    Generally, damage to an automobile will be covered by comprehensive car insurance, which is in addition to collision coverage ... Read Answer >>
  4. Does renters insurance cover moving?

    Learn how a renters insurance policy will only provide coverage during a move under certain circumstances, such as damage ... Read Answer >>
  5. What is the average return on total revenue for the insurance sector?

    Learn about the three main segments of the insurance industry, and find out what the average return on revenues is for the ... Read Answer >>
  6. How does the 80% rule for home insurance work, and how do capital improvements affect ...

    The 80% rule refers to the fact that most insurance companies will not fully cover the cost of damage to a house due to the ... Read Answer >>
Trading Center