HAMILTON, BERMUDA–Employment practices claims could soar this year as more companies lay off workers in a faltering economy–particularly in the financial institutions sector, professional liability underwriters here predicted.

Damage caused by the subprime debacle and resulting credit crunch, along with soaring energy costs, have “undermined the stability of workplace conditions” across the economy, according to James Gray, executive vice president and chief underwriting officer for professional liability at Max Bermuda Ltd.

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