Using the wholesaler connection to deliver EPL coverage

Compliance with the Fair Labor Standards Act has created much of the additional activity today under employment practices liability insurance (EPLI) coverage. Companies of all sizes can find themselves defending against allegations of discrimination, harassment or violations of wage-and-hour laws. These types of claims can place companies at risk for large financial losses, whether or not the allegations can be substantiated. The key for insurance agents is to help their clients handle situations proactively, with professional guidance and support from their EPL carrier. In this way they can avoid claims in this area, rather than merely responding only after a claim has been made. Because wholesalers specializing in professional lines know all the pros and cons and newest EPL coverage enhancements available on the market, they can help retail agents and brokers find the best fit for their clients. What should you look for in carriers who are best able to protect your clients? Underwriting experts: Will they tailor the policy to fit the unique exposures of your insured? Superior claims handling: Will the carrier quickly and efficiently handle your client’s claims, and does the carrier use law firms that specialize in employment practices issues? Risk management: Does the carrier offer a comprehensive risk management program, including hotlines, training, audits, and sample documents for implementation? Financial strength of the carrier: This is especially important in today’s uncertain economic climate. Work with only A-rated carriers at the minimum, using admitted paper for the state when available. For example, Atlantic Risk utilizes Beazley (rated A by A.M. Best) and Philadelphia (A+) for our EPL policies as carriers with strong financial backing and innovative EPL policies. Once mainly a concern of larger businesses, EPL is important coverage for businesses of all sizes. “Our small business owner found the benefits of carrying a comprehensive EPLI policy gave them peace of mind with all the employment issued facing small business owners today,” said Jackie Ortega, account manager for Filer Insurance Inc. in Miami, Fla., an agency which recently placed EPL for a small retail business client with Philadelphia through our company. The client was especially pleased with the additional enhancement coverage given by the Philadelphia policy’s “Bell endorsement,” including terrorism travel reimbursement, which covers any director or officer for emergency travel expenses that he or she incurs in the event of a “certified act of terrorism;” identity theft expense coverage, which reimburses the expenses of any director or officer who becomes a victim of an incident of identity theft; and workplace violence counseling if a violent incident occurs at any of the insured’s premises

Beazley Group, a leading insurer of management liability risks, has launched a new EPL policy that offers expanded coverage for employment-related privacy violations and covers the cost of hiring professionals to help employers cope with a range of major events impacting the workforce.