Some insurance companies already have included bullying in their employment practice liability coverage. Among them is Chartis. In 2010, the insurance company introduced Employment Edge, an employment practices liability policy that includes workplace bullying within its definition of harassment.
Keep your cool and don't give them any ammo to use against you. Whatever they do, document and report to your HR Dept. as well as your union (if you have one). Use language from the employee handbook and ALWAYS let HR know how your bully's behavior goes against this or that rule on preventing workplace violence / harassment AND how much MONEY this may cost the company. The bottom line is money. That's all your workplace cares about.