Many insurance defense law firms are not able to defend their corporate clients in employment litigation when the claim is subject to an employment practices liability insurance (EPLI) policy.
Frequently, the insured employer is required under the EPL policy to be represented by panel counsel. If the employer’s law firm of choice is not on the panel, the law firm can lose the right to represent their own client. Since litigation is typically one of the most lucrative actions in employment law, the loss hurts financially as well as from a client relationship perspective.
Being a pre-approved panel member with the carrier that provides EPL coverage to a client is clearly an ideal situation. Getting on an employment practices liability panel can be quite difficult, however, and may or may not be an option.
One way to minimize this risk is to try to get named as counsel of choice in the client’s EPLI policy. This process is frequently known as an “accommodation,” and is typically handled by the insurance agent or broker. Employment defense law firms are also advised to informally survey all employer clients to identify the status of EPL coverage.
Author Margaret Grisdela understands what it takes for an insurance defense law firm to get on an insurance panel. Read the full story for more details. You can reach the author at 561-266-1030 or email@example.com.
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