Lexology (04/18/12) Neal T. Buethe
Even when a company has employment practices liability insurance and fidelity bond coverages, the company can complicate or lose this protection if it improperly tenders a claim to the insurance company. Companies should take the policy-prescribed steps to secure coverage and work with legal counsel to protect the company’s rights while perfecting tender. This means not compromising the claim, allowing it to default, or making assurances to employees. It also means immediately reviewing the policy’s notice and tender provisions and then making a timely, documented submission to the insurer that tenders the matter for coverage under the terms of the policy.