Such cases suggest that a business may get its attorney's fees and defense costs paid, even if the insurance company reserves rights and won't pay a judgment. General liability policies insure against bodily injury, usually including sickness, disease or death. The insurer's liability to pay the judgment in discrimination cases often depends on whether the victim can prove bodily injury. Discrimination cases frequently include claims for mental anguish and emotional distress. Nationally, various courts go in different directions on this issue.
Umbrella policies are much broader than general liability coverages.
These are a layer of secondary insurance above the primary, or general liability, coverage. Some specify coverage for discrimination and wrongful discharge claims. Still, insurers try to get off the hook by arguing that policies cover accidents, while discrimination is intentional. Nevertheless, such insurance may be the best and cheapest way to go for managers seeking insurance protection against personnel problems. Still, review policies carefully to be sure just what they say about coverage.