Risk & Business Magazine Spectrum Insurance Magazine Summer 2018 | Page 27

LIABILITY INSURANCE arrangements, missed opportunities at promotion, and Fair Labor Standards Act (FLSA) violations of nonexempt employees working longer days, among others. If the claim falls under “wrongful acts,” the employer is provided coverage under EPLI. Then, of course, there are the exposures that one generally associates with EPLI. WAGE-AND-HOUR CLAIMS Such claims may arise out of a variety of scenarios, such as when employers alter time records to avoid paying overtime, misclassify exempt and nonexempt employees and independent contractors, or fail to provide due rest and meal periods. Defense costs for these lawsuits can be substantial, especially when they become class actions. Most employment practices liability insurers now specifically exclude coverage for wage-and-hour claims, among other types of FLSA violations. However, as with whistle-blower and retaliation claims, wage-and-hour claims may still be entitled to the cost of their defense under many EPLI policies’ broad “duty to defend” language. Likewise, the wage-and-hour claim may implicate coverage where the claim is itself based on a generally unfair business practice that is otherwise covered under the policy. SEXUAL HARASSMENT Claims of sexual harassment are usually covered under EPLI. As these claims often allege failures at the corporate level as well (e.g., failing to put in place workplace safeguards and policies), such claims may involve D&O coverage as well. RETALIATION The number of whistle-blower and retaliation claims continues to rise as workplace regulations and whistle-blower protections increase. Coverage for these claims, and their high cost of defense, is usually available under EPLI. Check your policy for actual coverages or ask your agent to include these coverages on your current policy. If you have any questions, you can reach me at 290- 884-2850 ext.5085 or michael.tiedt@ spectruminsgroup.com. + Mike Tiedt is a partner at Spectrum Insurance Group since 2009. Mike has over 25 years in the insurance industry helping clients with their risk management programs.