Protection for the rapidly changing world of employment related litigation

At Beazley we have extensive knowledge in the field of employment law and understand the risks posed to employers. To help them cope we have developed Beazley Workplace Protect, a package that combines the benefits of our employment practices liability cover with insurance specially designed to protect against the increasing threat of wage and hour related litigation. The wage and hour element covers claims made under the Fair Labor Standards Act, which are generally excluded from employment practices liability (EPL) policies.

The rise of Wage and Hour litigation

Wage and hour lawsuits are proliferating. A catalyst for this increase has been the adoption by various industries of new employment practices such as mobile workforces and flexible working patterns, while federal employment law has not always kept up with the rapid pace of change.

Examples:

• United States Department of Labor issues final rule concerning minimum salary threshold to qualify for exemption from overtime under the Fair Labor Standards Act ¹    
• Seyfarth Shaw Annual Workplace Class Action Litigation Report identifies record high certification rate for plaintiffs ²
• US Department of Labor issues proposal to update regular rate regulations. ³

Highlights

• Claims made and reported policy
• Duty to defend. Options available to amend to an indemnification basis
• Defence cost inclusive within the limit. Options available for defence cost in addition for EPL coverage section
• Broad definition of employment wrongful act, including discrimination, harassment, inappropriate employment conduct and retaliation
• Broad definition of wage and hour wrongful act
• Privacy violation coverage available
• Third party coverage available

Prevention services

Beazley is committed to helping organizations prevent claims from ever arising. All Beazley Workplace Protect customers will have access to BeazleySure, an online platform that provides policyholders comprehensive risk management support, including sexual harassment prevention training, a dedicated telephone hotline, and procedures in English and Spanish.

Superior claims handling

We have dedicated employment claims personnel on staff who work with top employment lawyers across the country to quickly and efficiently resolve claims.

Key territories

Worldwide coverage for employment practices liability
US only coverage for Wage and hour liability

Coverage

Due to its competitive retention structure, Beazley Workplace Protect will be particularly attractive to US organizations with upwards of 500+ employees. While over one third of organizations covered by Beazley’s wage and hour policy have between 500 and 2,500 employees, the average number of staff is 2,900. We consider submissions from a wide range of employers and have identified the following key markets:

• Manufacturing
• Retail
• Hospitality
• Transportation
• Healthcare
• Services
• Consulting
• Construction
• Utilities
• Financial Services

Limits

• Minimum premium of US $25,000 for EPL coverage section and US $75,000 for W&H coverage section
• Minimum self-insured retention of US $25,000 for EPL coverage section and US $250,000 for W&H Coverage Section
• Limits up to US $20,000,000 for EPL coverage section and US $10,000,000 for W&H coverage section
• Wage and hour limits up to US $25m available to large clients via Beazley-led Concorde Consortium
  at Lloyd’s.

Sources

1. Sheppard Mullin blog, March 8, 2019  
2. www.workplaceclassactionreport.com, January 2019
3. Law360 website; April 2018.
5. www.dol.gov, March 28, 2019