Employers are so alarmed by high-profile lawsuits that they're insuring themselves against costly discrimination claims. Interest in the once-obscure policies is surging in the wake of claims against such big names as President Clinton, Salomon Smith Barney, Texaco and Mitsubishi Motor Manufacturing of America.
Many insurance brokers say the plans are among the fastest-growing policies they sell.
The increasing number of lawsuits can really result in problems for Financial companies and play havoc with the bottom line. Most do not cover punitive damages. But some experts say having the plans encourages litigation. It makes it a little more enticing to sue because they have insurance. The available policies differ in part because some states ban insurance coverage for intentional acts.