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    Management liability in Specialty lines

    Workplace Protect

    Paul Nash

    Paul Nash

    EPL Focus Team Leader & Underwriter

    A comprehensive package, combining employment practice liability and wage and hour insurance, to protect organizations from employment related exposures.

    Lawsuits by employees form one of the largest categories of litigation brought against U.S. entities. As wage and hour related actions continue to grow at a record rate1, the need for organizations to be protected is set to increase. Today even the most informed and diligent employer runs the risk of a legal challenge from either collective actions or individual employees.

    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 give protection for the increasing threat of wage and hour related litigation.

    The rise of wage and hour litigation

    Wage and hour lawsuits are proliferating. The years 2000 to 2014 saw a near 440% increase2 in the number of Fair Labor Standards Act (FLSA) cases filed in Federal Court. The catalyst for this change has been the adoption by a variety of industries of new employment practices such as mobile workforces and flexible working patterns. This has coincided with a series of interpretations of the FLSA that furnish new litigation opportunities for the plaintiffs' bar.

    In 2015 alone examples include:

    • The Wage and Hour Division of the U.S Department of Labor issuing new guidance3 that is likely to lead to more workers being classified as ‘employees' rather than self-employed contractors.
    • Proposals to more than double the salary level that triggers the exemption from overtime entitlement of white collar workers.3
    • A Federal appeals court upholding a Labor Department regulation that extends minimum wage and overtime payment to almost two million home care workers.4

    Target market

    Due to its competitive retention structure, Beazley Workforce Protect will be particularly attractive to U.S. organizations with upwards of 1,000 employees.
    Whilst we consider submissions from a wide range of employers, we have identified six key markets:

    • Manufacturing
    • Retail
    • Hospitality
    • Transportation
    • Technology
    • Healthcare

    Key features of insurance cover

    • 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
    • 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 $5,000,000 for W&H coverage section
    • Worldwide coverage for employment practice liability
    • U.S. coverage for wage and hour liability

    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.

    Sources:
    1. Seyfarth Shaw Annual Workplace Class Action Litigation Report; January 2015.
    2. Society for Human Resource Management website; 22 May 2014.
    3. United States Department of Labor website.
    4. The Wall Street Journal website; Appeals court revives rule adding pay protections for home-health aides; 21 August 2015.

    Contact / team

    Paul Nash
    Underwriter
    T +44 (0)20 7674 7255
    paul.nash@beazley.com

    Wayne Imrie
    Underwriter
    T +44 (0)20 7674 7446
    wayne.imrie@beazley.com

    Carl Puttock
    Underwriter
    T +44 (0)20 7674 7791
    carl.puttock@beazley.com

    Sharlene Jooste
    Actuary & underwriter
    T +44 (0)20 7674 7566
    sharlene.jooste@beazley.com


    The descriptions contained on this website are for preliminary informational purposes only. In the US, the product may be available on an admitted basis in some but not all jurisdictions through Beazley Insurance Company, Inc. In other US jurisdictions, the product is underwritten by Beazley syndicates at Lloyd's and is available only on a surplus lines basis through licensed surplus lines brokers. The publication and delivery of the information contained herein is not intended as a solicitation for the purchase of insurance on any US risk.

    Except where products are issued by Beazley Insurance Company, Inc., coverages are underwritten by Beazley syndicates at Lloyd's and will vary depending on individual country law requirements and may be unavailable in some countries.  The exact coverage afforded by the products described herein is subject to and governed by the terms and conditions of each policy issued.

    Some coverages are made available through Beazley USA Services, Inc., which is a service company that is a part of the Beazley Group and has authority to enter into contracts of insurance on behalf of the Lloyd's underwriting members of Lloyd's syndicates 623 and 2623 which are managed by Beazley Furlonge Limited.  Beazley USA Services, Inc. is licensed and regulated by insurance regulatory authorities in the respective states of the US and transacts business in the State of California as Beazley Insurance Services (License#: 0G55497).