Wrap-Around Insurance Program

A wrap-around insurance program provides punitive damages insurance for employment practices liability claims. A punitive damage is awarded to a plaintiff to punish a defendant and deter them from committing future punitive actions.

A wrap-around insurance program is also referred to as a wrap-around policy because they are set up in conjunction with a Employment Practices Liability Insurance (EPLI) policy. The EPLI insures against claims from employees that employers have violated their rights. Eligible claims for such law suits can range from any form of discrimination to wrongful termination.

The most common award from these types of lawsuits are punitive or monetary damages. These are usually issued to cover a range of needs, including medical costs, loss of income, and pain and suffering. Employers carry these policies to cover the costs they could incur in the event that these types of lawsuits arise.

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 health and life insurance coverages when a singular policy does not meet current needs, or is not estimated to meet future needs.

Punitive cases fall under the civil court’s jurisdiction. And while there is still a defendant, there is no prosecutor, as there is during a criminal case. The main difference between the two types of cases is that a criminal case is one in which the crime takes place against, and therefore is prosecuted by, the state.

These types of trials are held with an employee from the District Attorney’s office acting as the prosecutor. The possible penalty for a guilty verdict is jail, a fine or a combination of the two.

With a civil case, there is no prosecutor provided by the state. The plaintiff must hire their own attorney to act on their behalf. Usually the plaintiff is seeking restitution for a financial loss of some sort that has to be awarded by the judge. There is no threat of jail time or a criminal conviction with civil cases.

Additionally, the burden of proof is much higher for a criminal case since the potential punishment is more severe. Judges and juries must be willing to convict beyond a reason of doubt in a criminal case. As such, defendants in criminal cases can request an attorney at a cost to the state if they cannot reasonably afford one. Civil cases require a defendant provide their own counsel.

Most often civil cases are tried and decided solely in front of a judge, while jury cases are more common in criminal trials.