Writing EPL insurance on an occurrence basis has its advantages. For example, under claims-made policies, the limit of Liability may be more prone to exhaustion. Because a claims-made policy may cover prior acts, the limit of Liability might be spread over many years. It may be necessary to increase the limit beyond what might be considered sufficient under an occurrence policy. Another drawback of claims-made coverage is that as soon as the policy is canceled or expires, coverage ceases.

RESERVATION-OF-RIGHTS LETTERS: A RISK MANAGER'S GUIDE Reservation-of-rights letters often leave risk managers scratching their heads in shock and anger. What does the insurer mean? How should ...