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Lexington Adds Discovery Coverage

December 10, 2007

Boston–Lexington Insurance Co. enhanced its Employment Practices Liability (EPL) insurance offerings to include E-Discovery Response, 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 discovery process in employment practices litigation has historically been extensive and expensive,” says Mark Ogilvie, EPL product line manager, for Lexington. “The environment is now even tougher, with newly amended Federal Rules of Civil Procedure requiring companies to produce information earlier in the litigation process, and raising the standards required to prove that producing such data is too difficult. In the past, companies complying with court requests for mountains of electronic data frequently felt they had no choice but to outsource this sensitive task in order to obtain coverage of this expense under their EPL policy.”

Lexington’s EPL coverage with the E-Discovery Response endorsement will reimburse insureds, subject to a sub-limit, for payroll expenses, inclusive of payroll taxes and fringe benefits, incurred when IT employees locate, extract, translate and/or restore electronically stored data in order to comply with a written discovery request in a covered claim. Pursuant to underwriting approval, E-Discovery Response is available to qualified Lexington EPL policyholders, who can receive this coverage for no additional premium by endorsement to their existing Lexington EPL policy.

Boston-based Lexington is a member company of American International Group Inc.

Source: Lexington Insurance Co.

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