Beazley has announced the availability of coverage for wage and hour claims as an extension of its employment practices liability (EPL) coverage.
The wage and hour coverage is available and separately underwritten on Beazley's stand alone EPL policies as well
as on BeazleyOne, a private company liability policy that covers both EPL and directors and officers exposures.
Carrie Brodzinski, EPL product manager for Beazley in the United States, said: “Wage and hour claims are among the fastest growing area of exposure for today's employers and yet employment practices policies typically don't cover them. There is a high demand for an EPL product that addresses these claims.”
Wage and hour claims involve allegations that an employer has violated federal or state laws that govern how
employees get paid. Employees' claims can range from a simple miscalculation of overtime pay to complicated
issues involving whether the employee is properly classified as an “exempt” employee earning a salary or a “nonexempt” employee eligible for overtime pay.
Research on the EPL market recently undertaken by Beazley identified wage and hour coverage as an area of
particular concern to employers and an issue that brokers felt was not being addressed by EPL insurers.
Brokers noted that as a rule EPL policies specifically exclude wage and hour claims from coverage, leaving insureds with a very real exposure.
