Ride the Lightning

INSURERS GET ON THE ED BANDWAGON

December 13, 2007

It had to happen. Insurance companies have figured out how to get a piece of the ED action. Lexington Insurance Company has announced it has enhanced its Employment Practices Liability (EPL) insurance offerings to include E-Discovery Response(SM), a new endorsement designed to cover an insured´s payroll expenses incurred while retrieving electronically stored information requested during discovery in a covered EPL claim. The new policy actually reimburses the company’s internal expenses associated with electronic discovery, including payroll and fringe benefits. The policy kicks in when information technology employees locate, extract, translate, and/or restore electronically stored data in order to comply with a written discovery request in a covered claim. For the moment, if you are a qualified Lexington ELP policyholder, you can receive this coverage without any additional premium. Pretty good marketing, it seems to me, and I’ll bet they see a real bump in folks signing on as policyholders. Whomever came up with this bright idea deserves a holiday bonus.

Thanks to my friend Rob Robinson, the inimitable blogger responsible for one of my favorite blogs (http://infogovernance.blogspot.com) for passing this story along.

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