Challenges
- Awarded punitive damages.
- Deemed an uninsurable claim.
Solutions
- Engaged and collaborated with specialty counsel.
- Undertook a detailed coverage review, paying special attention to the jurisdiction of the commercial insurers, insureds, and the captive.
Outcomes
- Achieved acceptance of the punitive damages language.
- Brought in a multi-million reinsurance coverage win for the client.
The Challenge
Symphony Health’s client, a large multi-specialty physician practice, suffered a catastrophic employment practices liability claim. Punitive damages were included in the award, which were deemed uninsurable in the client’s home state.
The Solution
The Symphony Health team found the right partner and engaged specialty counsel to review the commercially placed excess insurance and the captive policy. The team paid special attention to the jurisdiction of the commercial insurers, insureds, and the captive.
Upon a detailed review of the coverage tower of commercial insurance and reinsurance of the client’s captive insurance company, Symphony Health and claims counsel crafted a compelling argument for punitive damages coverage based on the most favored venue wording in the governing primary policy, highlighting the jurisdictions of the commercial insurers, insureds, and the captive.
The Outcome
Capitalizing on a long and expansive trading relationship, Symphony Health negotiated with the reinsurer, utilizing the jurisdiction of the captive policy to achieve acceptance of the punitive damages language, which brought in a multi-million reinsurance coverage win for the client.