front pay
Damages claimed by a former employee representing future wages and benefits
that would have been paid had the former employee not been terminated or had
the employee not been forced to resign. Given the frequency with which jury
awards include monies for "front pay," coupled with the potential magnitude
of such awards (a wrongfully terminated 40-year-old former employee could conceivably
receive 25 years of front pay), coverage for this element of damages under employment
practices liability insurance (EPLI) policies is desirable. Although most of these
forms do not include "front pay" within their definitions of "covered damages,"
neither do they exclude the exposure, and therefore cover it.
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PLI XXI.E