Twin City Fire Insurance Co. said it is not obligated to cover a Virginia employer’s $10 million punitive damages penalty for racial bias because the company’s behavior was found by a jury to be intentional. The employer, Society for Human Resource Management (SHRM, is seeking to trigger the employment practices liability (EPL) insurance coverage in its Twin City policy. Twin City agreed to defend SHRM subject to a reservation of rights, including with respect to the policy’s definition of damages. The punitive damages award was not, therefore, the result of negligence, gross negligence or any other non-intentional conduct, Twin City maintains. Twin City told the court that the coverage dispute affects the parties’ present conduct and requires immediate resolution.