The Employment Practices Liability Market Shifts Again

wage and hour claims are not covered like they used to be

Last year we saw many carriers begin to change their underwriting guidelines for EPL. What started with carriers pulling out of California has progressed into many carriers seeking to raise deductibles nationwide. In order to remain ahead of the ever changing Employment Practices Liability (EPL) environment and address the continued significant rise in single and multiple plaintiff claims involving wage and hour type disputes, Erisk has revised its Wage and Hour Claim Endorsement, EK-766, to offer coverage solely for Costs, Charges and Expenses (defense costs).

This change in the wage and hour coverage went into effect for all accounts (new/renewal) quoted on a SURPLUS LINES basis on or after January 15, 2013. The coverage change will occur on an admitted basis as each state approves the endorsement filing.Expect more carriers to restrict this coverage as claims continue to pour in. Other carriers, such as Chartis, have discontinued offering any wage & hour coverage last year and others may soon follow suit. Other carriers, like RSUI are taking the approach to charge for the coverage which they previously offered complimentary. It is very important that you continue to provide this coverage to your clients as long as it is available in the marketplace, even if you must recommend a quote with higher premium, it is worth it. PRS will always recommend the quote with full wage and hour or at least defense costs for wage and hour claims over those quotes which offer no coverage.
Leave Yours +

No Comments

Comments are closed.

  • Comments are Closed