By Wallace L. Clapp, Jr., CPCU
The market for employment practices liability coverage (EPLI) has increased even more since we reported on it last October. More than 60 facilities offer the coverage on a monoline basis or in conjunction with D&O or professional liability insurance.
Court decisions will continue to influence the growth of EPLI sales. At a recent Professional Liability Underwriters Society (PLUS) seminar, a discussion about the growth of EPLI sales revealed that such policies have not grown as quickly as was expected. The reason for this is, in part, because companies are resisting the purchase of another insurance coverage, and because many agents do not understand what more the policy offers that cannot be obtained by general liability and D&O insurance.
The market, however, is likely to grow to reflect the changing legal atmosphere of EPL exposures affecting the workplace. In addition, specialty insurers are constantly broadening their EPLI forms to reflect these changing EPL exposures.
The EPLI policy, which originally provided defense and judgment awards for sexual harassment, wrongful termination and discrimination, has since been broadened by many insurers to cover a broad range of employment actions including the three original risks, as well as breach of employment contract, workplace harassment, failure to employ or promote, deprivation of a career opportunity, negligent evaluation and employment related misrepresentation, defamation or wrongful infliction of emotional distress. Some markets have extended their policies to cover punitive damages and prior acts.
The United States Supreme Court is considering three cases of harassment that may affect employers' liability to employees for sexual and other types of harassment. Sexual harassment is one of three major exposures covered by the Employment Practices Liability (EPLI) policy, the hottest product in the specialty nonstandard marketplace.
The concept of sexual harassment was previously clarified by earlier court decisions which defined two types of harassment covered under civil rights legislation. These were "quid pro quo" and "hostile workplace" doctrines which have provided for payments to plaintiff victims in civil rights actions under E.E.O.C. More recently the Supreme Court judges have ruled that on-the-job sexual harassment can be illegal even when the offender and the victim are of the same sex. (Joseph Oncala vs. Sundowner Offshore Services, Inc., U. S. Supreme Court #96-5625, March 4, 1998). This ruling extended provisions of Title VII of the Civil Rights Act. This provision was originally intended to address sexual harassment by opposite sex offenders. The case is not thought to have any major effect on employers' liability, as the situation is only a small percentage of all sexual harassment incidences.
Cases before the Supreme Court yet to be decided may have a much greater influence on extending the exposure of employers for harassment, if decided against the employer.
Beth Ann Faragher vs. the City of Boca Raton, FL is a case that will help spell out an employer's liability for sexual harassment actions of its supervisory personnel when the plaintiff does not notify the employer of the harassment. Another case, Gebser vs. Lago Vista Independent School District (Texas), could determine the liability of a school district under Title IX of the 1972 educational amendments to the Civil Rights Act for a teacher's sexual relationship with an underaged student who never told anyone about it until the two were discovered by the police.
A third case concerning employer's financial responsibility is when a supervisor's pressure for sexual favors is accompanied by a retaliation threat that turns out to be empty. The employee was not fired when she refused sexual advances but later quit and sued, alleging sexual harassment. (Ellerth vs. Burlington Industries). This is similar to the recent federal judge's ruling in dismissing Paula Jones' case against Bill Clinton.
Another important aspect to the EPLI insurance market is the increasing awareness in the area of loss prevention. Employers have to fill out forms assessing their human relations department's actions and procedures. In addition insurers are requesting employers to adopt positive practices and procedures regarding sexual harassment, termination, hiring and promoting and making these generally known to all employees and supervisors in the form of signs and employee handbooks. In order to help them avoid wrongful employment practices, employers are provided with other risk management tools, such as: fax hot lines; training for sexual harassment and other exposures; counsel by employment practices risk management firms; and newsletters.
Most markets provide limits of liability of at least $100,000. The limit ranges up to $25 million for large corporations, but a few markets have the capacity to offer up to $50 million if needed. Deductibles usually start at $2,500 and can be extended to as high as $25,000 for large firms. There is a trend to eliminate the coinsurance penalty. Policies are being broadened and minimum premiums are dropping. The introduction of a "standard" form in April 1998 by the Insurance Services Office, for use by all insurers, will further influence the market.
We have again made a search of the marketplace and updated information from last December's issue of Rough Notes. We have received the latest information directly from the market sources. Some of the facilities are excess and surplus lines brokers who represent various companies; some are managing general agents or managing underwriters who represent one or more companies; while the rest are underwriters marketing on a brokerage basis or through managing general agents or excess and surplus lines brokers.
A description of the market follows, in alphabetical order. In some cases we have used a definition of terms from the actual policy to show the extent of coverage. The list includes only market sources from which we have received information; other sources are available in the standard and nonstandard market.
Aeon Insurance Services, 1941 N. Gateway Blvd., Ste. 102, Fresno, CA 93727-1605; (209) 455-5940; (888) 859-5034; fax (209) 455-5950; URL: aeon-inc.com (Karen Balliet, e-mail: kballiet@aeon-ic.com). The coverage is offered on a monoline basis and sometimes is combined with D&O. Limits are available from $100,000 to $5 million. The agency provides coverage to insureds in all states, most on an admitted basis, some nonadmitted. One program is written on an admitted basis on for-profit corporations of 75 or fewer employees. Limits vary from $100,000 to $1 million. The other program is for all classes of business with more than 75 employees. This program is written on a nonadmitted basis. The coverage added to a D&O policy is written by an admitted carrier for small corporations that are privately or closely held with $25 million or less in assets. Another program is in conjunction with D&O for nonprofits written on an admitted basis. Limits for both programs are available from $500,000 to $5 million. The agency also offers a loss prevention program.
AIG/Morefar Marketing, Inc., 501 Carr Rd., Wilmington, DE 19809; (302) 761-5604; fax (302) 761-5659 or (800) 664-5299 (John Foerster). The policy covers federal, state and local laws, as well as the employment practices statutes of the Americans with Disabilities Act. The limit of liability is up to $10 million/$10 million. The facility provides a market for companies with 500 or fewer employees. All classes of business are eligible with the exception of temporary help and employee leasing companies.
The coverage is marketed countrywide to agents and brokers. Underwriting companies are member companies of American International Group. The policy is written on a monoline basis.
The American Agency, Inc., P.O. Box 12070, Overland Park, KS 66282-2070; (913) 661-0123, ext,114; (800) 642-1872; fax (913) 451-3183 or (800) 642-1329 (Chuck Rogers). The coverage is written monoline or in conjunction with for-profit D&O and with public officials liability. Primary limits are available up to $1 million with excess limits available. The facility is accessible to agents in all states except AK and HI. Underwriters include: Evanston, Executive Risk Indemnity, Preferred National, and U.S. Liability.
Arlington/Roe & Co., 8465 Keystone Crossing, Indianapolis, IN 46240; (317) 257-9123; (800) 878-9891; fax (317) 259-4106 (Jill Bolling, e-mail: jillb@arlington-roe.com). This managing general agent offers an EPLI policy on a monoline basis or in conjunction with D&O coverage. Limits of liability are from $100,000 to $5 million. The firm represents various EPLI carriers and serves agents/brokers in the Midwest as Atlantic Specialty Lines, Inc., P.O. Box 35723, Richmond, VA 23235; (804) 320-9500; (800) 368-2095; fax (804) 320-7280. (Greg Provenzo, e-mail: gregprov@atlanticSpecial.com). Coverage can be offered on either a monoline basis or as an endorsement to professional liability or D&O policies. Primary policies provide limits ranging from $250,000 to $1 million/$2 million. Following form excess liability limits are available. The agency services agents on a nationwide basis. It operates as a general agent for several insurers.
Bailey Specialty Risks, Inc., P.O. Box 768, Hendersonville, TN 37077-0768; (615) 264-3977; (800) 768-RISK; fax (615) 264-3980; URL: http://www.baileyrisks.com (Jim Edwards, e-mail: jedwards@baileyrisks.com). This office represents 14 markets writing EPLI and holds pricing authority on certain classes of risk. One of the forms used by this office is the Evanston Insurance Co. form. That form is now available through its admitted sister company, Markel American in TN and some other states. The form covers violations of any workplace discrimination act whether federal, state or local. In addition, the form covers violations of the Family and Medical Leave Act and the Fair Labor Standards Act and any workplace common law tort. By means of an endorsement, the form can include prior acts coverage and third-party discrimination.
Contractual liability is available for those situations when the insured is required to hold harmless an employment agency or employment leasing firm. Limits vary from market to market, but the office can provide limits in excesss of $50 million. Certain umbrella markets represented by the agency will include excess EPLI when underlying EPLI limits are at least $1 million. Facilities are available in any state and can cover any type of risk regardless of size or nature of operation. Stand-alone forms of coverage are recommended. The firm's short-form application is accessible on its Web site. The firm also operates a fax/e-mail broadcast service which includes a regularly updated form comparison spreadsheet for its contracted producers.
Beckwith Insurance Brokers, Inc., (formerly Finserve, Ltd.), 207 Broadway, Hanover, PA 17331; (717) 633-9000; (800) 699-1519; fax (717) 633-7315 (Vincent A. Donofrio). The wholesaler offers EPLI on a monoline basis or in conjunction with other miscellaneous professional liability policies, such as D&O, mortgage brokers and other financial institution products. Limits of liability are available up to $25 million primary. The policies are assessable to agents in all states. Underwriters used are Executive Risk, AIG/Morefar Marketing, Gulf, St. Paul, AIG and Reliance.
Bohrer-Croxdale & McAdoo, Inc., P.O. Box 2760, Springfield, MO 65801-2760; (417) 869-2550; (800) 779-2550; fax (888) 869-2550 (Vicki Cota). The surplus lines wholesaler writes EPLI primarily on a monoline basis. Some markets also provide EPLI in conjunction with nonprofit and for-profit D&O and lawyers, and some classes of miscellaneous E&O. Limits written are up to $5 million. The agency serves agents in AR, IL, IA, KS, MO, NE and OK. Various markets are represented.
Russell Bond & Co., Inc., 866 Ellicott Sq. Bldg., 295 Main St., Buffalo, NY 14203-2595; (716) 856-8220; (800) 333-7226; fax (716) 856-0403; e-mail: info@rbcoins.com (Tonya Hollederer, ext. 133 and Judy Lawson, ext. 131). Coverage is written monoline or in conjunction with other coverages such as D&O, school board legal and public officials liability. Primary limits available are up to $25 million. Unlimited excess. The managing general agency serves agents in NJ and NY. The firm represents U.S. Liability.
R.J. Bostick & Associates, Inc., 38029 Third St., Willoughby, OH 44094-6130; (440) 942-2626; (800) 969-2463; fax (440) 942-3363 (Jana Shippitka). The firm writes EPLI on a monoline basis and also in conjunction with D&O and E&O policies. Primary and excess coverage is available to limits of $25 million plus. The firm can serve agents in all states.
Burns & Wilcox, Ltd., 30833 Northwestern Hwy., Ste. 220, Farmington Hills, MI 48334; (248) 932-9000; (800) 521-1918, ext. 300; (fax) 248 865-2281 (Jonathan Brown). EPLI is written either on a monoline basis or as part of nonprofit D&O facility. Limits range from $100,000 to $5 million. The firm serves agents in all states except NY. The monoline policy is written with Lloyd's of London, and the nonprofit D&O with Legion. The EPLI facilities also can be accessed through the Illinois R. B. Jones office in Chicago at (312) 957-0510; (800) 254-5411; fax (312) 957-0289.
Centurion Corp., P.O. Box 959, Hanover, NH 03755; (603) 643-2000; (800) 258-3056; fax (603) 643-2740; e-mail: tom@centcorp.com (Tom Canfield). Limits are available up to $25 million on a primary or excess basis. The firm services agents in all states.
Charity First, One Market, Spear Tower, Ste. 200, San Francisco, CA 94119-8561; (415) 536-8560; (800) 352-2761; fax (415) 536-8561; URL: www.charityfirst.com (Mike Komar, e-mail: mike_komar@ajg.com). This agency specializes in nonprofit groups. It provides EPLI on a monoline basis or in conjunction with D&O policies. Primary limits are available up to $5 million. The firm serves agents in all states except HI and Puerto Rico. The firm is a managing underwriter for Executive Risk and U.S Liability.
Chubb & Son, Inc. (Executive Protection Practice), 15 Mountain View Rd., Warren, NJ 07061-1615; (908) 903-2485; fax (908) 903-3591; URL: http://www.chubb.com (John Kuhn, e-mail: jkohn@chubb.com). The company offers EPLI on a monoline basis or combined with D&O and other forms for corporations and professionals. Limits are available to $50 million. The company operates in all states. Insurers are Federal, Vigilant and Chubb Custom Insurance.
The policy covers a broad range of employment-related allegations including: wrongful termination; workplace and sexual harassment; breach of employment contract; discrimination; failure to employ or promote; deprivation of a career opportunity; negligent evaluation and employment-related misrepresentation; defamation or wrongful infliction of emotional distress. The policy also may be endorsed for punitive damages coverage. The policy does not have a prior acts exclusion.
Concord Insurance Brokerage, Inc., 135 Kinnelon Rd., Ste. 102, Kinnelon, NJ 07405-2333; (973) 492-6500; fax (973) 492-0222; URL: http://www.concordins.com (Frank Siegel, e-mail: cici@juno.com). EPLI coverage is available monoline, and in conjunction with D&O. Limits range from $100,000 to $25 million, depending on the size of the firm and the carrier. Both primary and excess coverage are available. The facility is accessible to agents in all states. Insurers represented include: Evanston, AXA/Global (Colonia), Executive Risk, Reliance, Lloyd's, Zurich, Chubb, Progressive, and AIG.
Continental Marmorstein & Malone, P.O. Box 586, Paramus, NJ 07652; (201) 261-5100; fax (201) 261-8922 (Mary Ellen Rozzell). This office writes EPLI on a monoline basis or in conjunction with D&O and public officials liability. Limits are available to $10 million. The firm serves agents in NJ and also writes from offices in CT, FL RI and VT. One market is extremely competitive on firms with fewer than 200 employees. Other markets are available.
Delaware Valley Underwriting Agency, Inc., 420 S. York Rd., Hatboro, PA 19040; (215) 443-3500; (800) 388-0215; fax (215) 672-7983; URL: http://www.dvua.com; e-mail: info@dvua.com. Both monoline and combined coverage are offered. Limits of liability range from $100,000 to a maximum of $10 million or higher. The managing general agency services agents in DE, MD, NJ and PA. Insurers used include: U.S. Liability, Evanston, Reliance, AIG, Executive Risk, Chubb, Gulf and Genesis.
Employers Reinsurance Corp., P.O. Box 2991, Overland Park, KS 66201-1391; (913) 676-5200; (800) 255-6931; fax (913) 676-5359; URL: www.westportons.com (Ron Kettner). The company offers EPLI on a monoline basis through Employers Reinsurance Corp., and in conjunction with other businesses through Westport Insurance Corp. The monoline coverage has limits up to $5 million. Facilities are available in all states through brokers licensed with ERC.
Coverage on the following other types of business in Westport Insurance is available for moving and storage companies, wholesale distributors, lawyers, amateur sports (American Specialty is the MGA) and waste haulers. The company writes in all states except VA and WY. Limits in Westport are available to $5 million.
First State Management Group, Inc., 150 Federal St., Boston, MA 02110-1753; (617) 526-7792; fax (617) 526-0612 (Jim Seward, CPCU, RPLU). This surplus lines insurer writes EPLI on a monoline basis. Coverage is available in all states on a nonadmitted basis using Pacific Insurance Co., Ltd., paper. Limits are available to $10 million. Additional limits are available with facultative reinsurance.
Donald Gaddis Co., 150 S. Wacker Dr., Ste. 600, Chicago, IL 60606; (312) 853-0071; fax (312) 853-1033 (Christopher Gaddis). This office writes EPLI for all forms of employers' risks except governmental entities. The company represents various carriers. It offers coverage for all discrimination acts, the ADA, Family Medical Leave Act, Fair Labor Standards Act, independent contractors or leased employees. Covered damages include: defamation, invasion of privacy, false imprisonment, intentional infliction of emotional distress, limited contractual, negligent supervision or hiring, punitive damages, labor arbitration, retaliatory discharge, downsizing, non-monetary relief and benefits.
Limits of liability vary from $100,000 for small employers to $5 million for larger employers. The firm operates primarily in IL and WI. Other states will be considered. The firm is not an MGA and offers coverage on a brokerage basis. The policy is written monoline or in conjunction with D&O.
Gateway Underwriters Agency, Inc., 755 S. New Ballas Rd., St. Louis, MO 63141-8713; (314) 567-4200; (800) 325-7652; fax (314) 567-4552 (Carl H. Bartlotti, CPCU). The managing general agency writes EPLI on a monoline basis or in combination with D&O and professional liability policies. Limits are available to $1 million primary but can access markets up to $10 million limits. The facility is available in all states. The firm is an MGA for the Mt. Vernon Fire and U.S. Liability Cos. but also represents Tudor, American Equity, Gulf, Lexington, Executive Risk and Scottsdale.
Accounts with 50 or fewer employees may be written competitively with U.S. Liability. Full prior act coverage is available; $2,500 retention; and low rates. The insurer also has a good program for firms up to 200 employees.
Great American Insurance Co., Executive Liability Division, 1515 Woodfield Rd., Ste. 500, Schaumburg, IL 60173; (847) 330-6750: fax (847) 330-6890; URL: www.gaic.com; e-mail: gaiceld@megsinet.com (Mike Levins). This company writes EPLI in conjunction with D&O. Limits are available up to $25 million, although most quotes are $1 million to $5 million. The company writes in all states and Canada. It does not use general agents or managing underwriters.
Hanover Insurance Co., 100 N. Parkway, Worcester, MA 01605; (508) 855-4778; fax (508) 856-9092 (Rachael Johnston). This insurer has introduced an EPL policy and has it approved in most states. The policy is written on a monoline basis. Limits are available from $50,000 to $5 million. It is targeted to small and medium-sized insureds. Deductibles range from $2,500 to $25,000 depending on limits.
International Brokerage and Surplus Lines, 120 E. Pine St., Ste. 11, Lakeland, FL 33801; (941) 687-2940; (800) 348-4275; fax (941) 687-4684; e-mail: ibslhome@aol.com (Janner Holiday IV). Offers EPLI on a monoline basis or combined with D&O. Both primary and excess limits are available. The firm services agents in the southeast and southwestern states. Insurers used are Executive Risk and AIG.
Jardine Group Services Corp., 13 Cornell Rd., Latham, NY 12110; (518) 7832-3000; (800) 998-5545; fax (518) 782-3139. (Jim Bradley, e-mail: jbradley@jgsc.com). EPLI coverage is placed on a monoline basis as well as in conjunction with specialty E&O/D&O programs designed specifically for consultants, attorneys and financial advisors. Limits are available from $100,000 to $20 million. Coverage enhancements include punitive damages and third-party claims available in some states. The facility is accessible to agents in all states. Insurers used include: AIG, Executive Risk, Great American and First State Management.
Jimcor Agencies, 15 Vervalen St., Cloister, NJ 07624; (201) 784-8900; fax (201) 784-7901 (Frank Mastowski, CPCU). Writes both monoline EPLI and policies in conjunction with other types of coverage, primarily D&O and other professional classes. Limits are available from $250,000 to $1 million primary. Excess available to $10 million. Primary states served are DE, MD, NJ NY and PA. Others are available. Primary companies are Evanston, Reliance, U.S. Liability and Chubb.
H.R. Keller & Co., Inc., 1520 Sheridan Dr., Buffalo, NY 14217;(716) 874-1644; (800) 424-2202; fax (716) 874-4920 (Rob Martin). Writes EPLI on a monoline basis or in conjunction with D&O. Limits are available up to $1 million. Serves agents in NY only. Insurers used are Great American and Executive Risk.
Gary Markel Surplus Lines Brokerage, P.O. Box 20007, St. Petersburg, FL 33702; (813) 577-5980; (800) 237-2470; fax (813) 577-5804 (Barbara Ermatinger and Sue Borucki). Coverage is written on a monoline basis and can be written also in conjunction with D&O and some professional liability coverages, i.e., lawyers, insurance agents, public officials, school boards, some physicians groups and miscellaneous professional risks. Limits of liability start at $250,000 and range up to $25 million. Not restricted to a certain geographical area but writes most of business in the southeastern states. Uses more than 20 markets but is not an MGA.
Northland Insurance Cos., 1295 Northland Dr., St. Paul, MN 55120-1146; (800) 237-9334; fax (612) 688-4280 (Gwen L. Holler, CPCU, e-mail: gwen.holler@northlandins.com or Steve Hunziker, e-mail: steve.hunzinker@nothlandins.com). Writes both monoline EPLI and EPLI in conjunction with D&O. Limits for the monoline policy are up to $5 million primary. Limits for the coverage with D&O are up to $10 million primary or excess. The monoline facility is available in all states except NH and NJ. The D&O endorsement is available in all states except NJ.
Pennock Insurance, Inc., P.O. Box 2000, Chadds Ford, PA 19317; (610) 358-2600; (800) 662-5182; fax (610) 358-3449 (Cindy King). The managing general agency writes on a monoline basis or with D&O for most professionals. Services agents in DE, MD, NJ and PA. Underwriters used include: U. S. Liability, First State, AIG, AXA/Global Risks, Executive Risk and Preferred National.
Philadelphia Insurance Cos., One Bala Pz., Ste. 100, Bala Cynwyd, PA 19004; (610) 617-7762; (800) 759-4961, ext. 7762; fax (610) 617-7940 (James J. Maguire, Jr.). Covers private and public companies with between one and 10,000 employees. The company does not write auto dealers, lawyers and health care facilities. All major E.E.O.C. requirements relating to sexual harassment, wrongful termination and discrimination are covered. Limits are available to $10 million. The company is licensed in all states except LA.
Phoenix Excess & Surplus Lines, Inc., P.O. Box 7386, W. Trenton, NJ 08628;(609) 530-0111; fax (609) 530-0661; e-mail: phinix@ix.netcom.com (Mary Perri). The monoline form is offered for all classes of business and is the broadest form. On nonprofit D&O, which includes school leaders/educators, public officials, most companies offer EPL within the policy form. It covers the entity, employees, volunteers and trustees. EPL can be written as an enhancement to corporate D&O, but it covers only the entity and directors and officers. For miscellaneous E&O companies write an EPL endorsement. Primary limits are up to $5 million. If a corporation is financially secure and large enough, limits can go up to $25 million. The agency is licensed to write in NJ, NY and PA. The firm writes for various companies.
Preferred National Insurance Co., P.O. Box 407003, Ft. Lauderdale, FL 33340-7003; (954) 752-1222; fax (954) 344-7961. EPLI coverage is written primiarily on a monoline basis, but it can be added to the agency's preferred package BOP and D&O policies. A small amount ($5,000) is automatically included in the restaurant packages. Primary limits are available up to $1 million/$1 million. Deductible is $5,000.
The coverage insures the corporation, directors and officers and supervisory employees. The policy covers discrimination, sexual harassment, wrongful termination, breach of employment contract, failure to employ or promote, wrongful discipline. The coverage is offered to agents in all states, except AK, CT, DE, ME, MA, MI, NH, NM, NY, OK, RI and VT.
Prime Insurance Syndicate, P.O. Box 711148, Salt Lake City, UT 84171; (801) 944-3250; (800) 257-5590; fax (801) 944-3254; and 311 S. Wacker, Ste. 410, Chicago, IL 60606; (312) 983-7190; (800) 456-4576; fax (312) 408-8081 (Tony Benjamin). Prime writes on a monoline basis and on package policies. Limits are available on a primary basis up to $1 million. Facultative limits/quotes, as high as requested. Prime writes in 39 states in which INEX is accepted. (Exceptions are CA, CO, CT, FL, ME, NV, NH, NY, RI, TX, and WA.)
Princeton Risk Managers, Inc., 201 Wall St., Princeton, NJ 08540-1587; 609-924-9222; fax 609-924-8155. (Jim Griffith). Coverage is written on a monoline basis and in conjunction with D&O and other coverage, such as educators, lawyers, medical and other professional liability policies. Limits are available from $250,000 to $5 million plus. The managing general agency services agents in CT, NJ, NY and PA. Acts as a broker for the following markets: Chubb, Evanston, AIG, Executive Risk and Seneca and others.
Professional Governmental Underwriters, Inc., P.O. Box 35471, Richmond, VA 23235; (804) 272-6557; (800) 586-6502; fax (804) 272-7852; URL: www.pgui.com; e-mail: pgui@pgui.com (Martin H. Kanipe). EPLI is offered in conjunction with the following programs: public officials, school boards liability, nonprofit organizations D&O, and public and educational entity umbrella. Limits are available up to $5 million/$5 million. These programs are accessible by agents in all states. The agency represents Old Republic, Royal and United National.
Professional Indemnity Agency, Inc., P.O. Box 130, Pleasantville, NY 10570; (914) 747-7880; fax (914) 747-3737; e-mail: rattcom@aol.com (Audrey S. Coughland). Offers EPLI as a part of the following coverages: nonprofit organization liability; D&O; and corporate coverage insurance (a blend of D&O, fiduciary, EPL, crime and kidnap/ransom and extortion coverages).
Limits available up to $5 million on a primary or excess basis. Policies are written in all states. The firm is a managing underwriter on behalf of Legion Insurance Co. and Lloyd's of London.
Professional Managers, Inc., 2 N. Riverside Plaza, Ste. 2360, Chicago, IL 60606-2601; (312) 466-4955; fax (312) 559-0167; URL: http://www.webpmi.com (Brian Van Cleave). Firm writes EPLI as an endorsement to E&O policies issued by the General Star Indemnity Co. (miscellaneous E&O, accountants, insurance agents, lawyers and brokers). Limits are available up to $1 million in excess of deductible starting at $2,500. The EPLI limit is a separate limit and is not affected by E&O claims.
Professional Risk Co., 600 University St., One Union Sq., Ste. 2501, Seattle, WA 98101-1129; (206) 621-8808; fax (206) 682-9176 (Patrick R. Campbell). Writes strictly monoline EPLI policies including risk management services (a comprehensive review with report of HR practices, unlimited toll-free consulting, quarterly newsletters and optional training packages). Primary limits are offered from $1 million/$2 million to $5 million/$5 million. The firm services accounts in all states except ME, TX and VT. The firm is an exclusive underwriting manager on behalf of Fireman's Fund Insurance Co.
Professional Underwriters Agency, Inc., 2907 Butterfield Rd., Ste. 320, Oak Brook, IL 60521-1197; (630) 575-8111; fax (630) 575-0033 (Ram Chandarana, e-mail: ram@puainc.com). Writes monoline EPLI coverage. Limits of liability are: $500,000/$500,000; $1 million/$1 million; or $1 million/$2 million. Excess limits up to $5 million are available for the eligible risks. Can also provide excess up to $5 million in excess of primary limits of $1 million/$1 million. This facility is available to agents in all states except NH on a surplus lines basis. The firm is a managing underwriter for American Equity Insurance Co. (rated A+VIII).
Progressive Corp., 747 Alpha Dr./PLG-A31, Highland Heights, OH 44143-2124; (800) 274-5222; Fax (800) 456-6590 (Courtney Neville). EPLI is written as an enhancement to the Progressive-American Bankers Association package to financial institutions (includes financial institutional bond and D&O). Coverage is available for the financial institution itself, directors and officers and employees. Coverage is permitted for mental anguish, emotional distress and employment related libel, slander and defamation. Coverage is a separate policy which minimizes possibility of erosion of D&O policy limit. Primary limits available up to $5 million. Facility is available to agents in all states.
Quaker Special Risk, P.O. Box 415, Sea Girt, NJ 08750-0415; (732) 223-666; (800) 392-6837; fax (732) 223-9072; URL: www.qsr-insurance.com (Karen Birch). Writes on a monoline basis as well as combined with D&O policies. Limits of liability are $10 million primary and $25 million excess. The firm serves agents all along the eastern seaboard and in NM. The agency uses the following underwriters: Pacific, Reliance, Lloyd's, U.S. Liability, Evanston, Admiral, Tudor, Commercial Underwriters, Executive Risk, Markel Insurance Co.
Rigdon & Gioia, 3033 Ogden Ave., Ste. 300, Lisle, IL 60532-1673; (630) 961-9605; (8000 692-5732; fax (630) 961-0284; URL: www.rpgioia.com (Bruce Henriksen). Coverage is written on a monoline basis. Limits of liability range from $50,000/$100,000 to $5 million/$5 million on a primary basis. Does not offer the coverage of other carriers. Minimum deductible is $2,500. A sexual abuse extension endorsement may be added to the coverage. The firm services agents in all states except CT, NM, and RI. Underwriter is Commercial Underwriters Insurance Co (A+).
RISC, Inc., 750 N. St. Paul, Ste. 300, Dallas, TX 75201; (214) 954-0707; (800) 725-7472; fax (214) 954-0999; e-mail: risc@aol.com (Lori Lemons). Offer EPLI either monoline or includes it with D&O. Limits are available up to $50 million. Services agents primarily in TX but can offer coverage in all states with a licensed surplus lines agent in a particular state. Companies include: Executive Risk, Evanston, Great American, Lexington and First State.
Rockwood Programs, Inc., 228 Philadelphia Pike, Wilmington, DE 19809; (302) 765-6000; fax (302) 764-5477 (Mary Preston Brown). Coverage is written on a monoline basis. Primary limits are $250,000 up to $5 million. The coverage is available in all states. The firm is an MGA for Gulf Insurance Co.
Roush Insurance Services, Inc., P.O. Box 1060, Noblesville, IN 46061; (317) 776-6880; (800) 752-8402; fax (317) 776-6891 (Jerry Roush). Available on a monoline basis as well as in conjunction with D&O. Primary limit is $1 million, Excess available to desired limit. Services agents in IL and IN. Uses Tudor and Scottsdale Insurance companies.
Scarborough Insurance (a division of Financial Solutions), 10 S. LaSalle St., Chicago, IL 60603; (312) 630-7420; fax (312) 630-7421 (Rick Maka, e-mail: Rick-Maka@aon.com). Coverage written on a monoline basis or in conjunction with D&O. Writes financial institution risks primarily. Limits of liability up to $5 million are available. The firm serves agents in all states. It acts as managing underwriters for Royal & Sun Alliance Insurance (A). Ausco, Inc., a subsidiary E&S broker in Chicago ((312) 922-6100; fax (312) 913-5600), works with Reliance, AXA/Global Risks, U.S., Reliance, and Underwriters at Lloyd's.
Shand Morahan & Co., Inc., 1007 Church St., Evanston, IL 60201; (847) 866-0720; fax (847) 866-0827 (Stan E. Zolna, e-mail: zolna@markelcorp.com). EPLI is written on a monoline basis. The policy is available with the following primary limits: $250,000/$1 million; $500,000/$1 million; and $1 million/$1 million. Limits up to $5 million/$5 million are available on a select account basis. The EPL program is available nationwide through the firm's network of appointed wholesale brokers. Shand Morahan is the underwriting manager for Evanston Insurance Co., a surplus lines carrier. For admitted EPL products, the firm is managing underwriter for Markel Insurance Co. and Markel American Insurance Co. Admitted paper is available in AL, CA, CO, GA, IN, IA, IL, KY, MI, MN, NJ, TN and WV.
Sherwood Insurance Services, 201 California St. Ste. 1000, San Francisco, CA 94111; (415) 956-8459; fax (415) 956-1204 (Peter Thrasher, e-mail: peter-thrasher@shrwd.com). This firm is a subsidiary of Aon Insurance Services. Offers EPLI on a monoline basis, and also in conjunction with educators, public officials, lawyers and D&O policies. Limits of liability are available up to $50 million. The firm represents many companies that have capacity of up to $25 million, and it has the ability to access excess markets for another $25 million excess of $25 million.
Can service agents and brokers in all 50 states. This broker specializes in EPLI. A few of the companies that it represents are: Lloyd's of London, CNA Reinsurance, Reliance National, AXA/Global Risk, National Union, Lexington, General Star, Zurich American, Admiral, Executive Risk, American Equity, Fireman's Fund, Evanston, Chubb, St. Paul Re and U.S. Liability.
Southeast Underwriting Group, Inc., 10 Fairway Dr., Ste. 204, Deerfield Beach, FL 33441; (954) 698-9975; (800) 648-1389; fax (954) 698-9978 (Jay Martin). Can write monoline or in conjunction with the firm's insurance agents E&O. Will reduce EPL premium up to 50% if it is written with agents E&O. Limits of liability are $1 million/$1 million. Writes in all states except LA. Underwriting companies are: U.S. Liability and Mt. Vernon Fire Insurance Co.
Tennant Risk Services, 185 Asylum St., City Place II, Hartford, CT 06103; (860) 527-9717; fax (860) 527-2438 (Charlene DeBaise, e-mail: cdebaise@conning.com). Writes most classes of EPLI. Offers broad coverage, full punitive damages, no coinsurance, written on a monoline basis. Limits are available up to $10 million/$10 million. Minimum deductible is $5,000. Services agents in all states. Underwriters include: Lloyd's of London, Shand Morahan, and AIG.
Travelers Property & Casualty, One Tower Sq., 3PB, Hartford, CT 06183; (860) 277-3915; fax (860) 277-3930 (Robert J. Schueler, EPLI portfolio manager, Bond Department, e-mail: robertjschueler@travelers. com). The company writes the Travelers Employment Practices Liability Plus +sm policy which features the following highlights:
The definition of the critical insuring agreement term, "Wrongful Employment Practice," includes wrongful termination; discrimination; protected status harassment; retaliation; sexual harassment; breach of employment agreement; employment-related misrepresentation; wrongful failure to employ or promote; wrongful discipline, denial of training, deprivation of career opportunity, denial or deprivation of seniority, failure to grant tenure, evaluation; invasion of privacy, employment related defamation, related infliction of emotional distress. "Wrongful Employment Practice" addresses the overwhelming majority of federal and state employment practice regulations.
The company targets primary coverage for companies with up to 2,000 employees, excess coverage for over 2,000 employees. This company serves growth industries, (e.g., software development, retirement services, biotech, mail order/catalogue companies, domestic pharmaceuticals, systems integration); manufacturers and wholesalers, (e.g., plastics, glass products, food products, surgical instruments, select consumer products, machinery); and business services (e.g., data processing, computer maintenance, credit reporting, mailing services). Limits of liability range up to $2 million for primary, but the company will consider higher limits on a case-by-case basis. Market capacity is up to $25 million. The coverage is offered on a countrywide basis.
Travelers has recently introduced a new underwriting program for companies with fewer than 100 employees. The "under 100" program features a short, easy to complete two-page application, limit options of up to $1 million, deductible options of $5,000, $10,000 or $25,000, and a minimum premium reduced to $1,250.
The company does not use managing general agents but has 42 underwriting offices with local underwriting and claim handling. The coverage is written on an admitted, monoline basis. Each insured receives, for no additional charge, a copy of the Risk Management PLUS program, created specifically for Travelers by Labor Consultants of America, a leading employment practices risk management firm.
The program has three components: (1) collective response; (2) training of front-line managers and supervisors; and (3) sample policies and procedures, e.g., employment-at-will, sexual harassment, equal employment opportunity, pregnancy discrimination, anti-drug, to be adopted by employees.
Tudor Insurance Co., 400 Parson's Pond Dr., Franklin Lakes, NJ 07417-2600; (201) 847-2720; fax (201) 847-1010 (Pauline Morley, CPCU, RPLU). Offers EPLI on a monoline basis. Primary limits of liability up to $1 million. Facility is available to brokers in all states.
United Brokers, Inc., P.O. Box 1243, New Albany, IN 472151-1243; (800) 444-4824, ext. 112; fax (812) 949-4015 (Tricia Coffey). Offers EPLI on monoline basis or in conjunction with insurance agents E&O, real estate agents E&O, CGL, D&O and other professional liability policies. Limits of liability are available up to $1 million. The coverage is available in all states. Defense costs are outside the limit of liability. Underwriters are U.S. Liability and Mt. Vernon Fire.
U.S. Liability Insurance Group, 1030 Continental Dr., King of Prussia, PA 19406-0951; (610) 688-2535; (800) 523-5545, ext. 281 ; fax (610) 688-4391 (John Donahue). Offered on a monoline basis. Limits of liability are available up to $2 million primary. The policy is designed for companies with fewer than 200 employees. The policy is available in all states except LA. Excluded classes of business are: broadcasting companies, casinos, coal mines, colleges and universities, general contractors, entertainment industry, federal contract companies, government agencies, hospitals, law firms, municipal risks, nursing homes, restaurants, security guard services, steel mills and temporary/employment agencies. The policy can provide for: no coinsurance; Family Medical Leave Act coverage; claims by vendors/independent contractors at location of insured for sexual harassment; claims by temporary workers; no exclusion for downsizing, plant closings or layoffs; no exclusion for libel, slander, defamation, emotional distress or mental anguish.
Van American Insurance Services (formerly SMIS Insurance), 2 Riverchase Office Pz., Ste. 208, Birmingham, AL 35244; (205) 985-7511, ext. 300; (800) 755-7647; fax (205) 403-0761; URL: http://www.vanamerican.com (Teresa Freeman, e-mail: tfreeman@vanamerican.com). Is a wholesale broker specializing in EPLI. Writes on a monoline basis and in conjunction with D&O coverage. Primary limits start at $250,000/$1 million and go up to $25 million. The facility is available in all states. Represents various underwriters.
J.M. Wilson Corp., 8036 Moorsbridge Rd., Portage, MI 49024; (616) 327-4130; (800) 666-5692; fax (616) 327-4131; URL: www.jmwilson.com (Karen Stites, e-mail: karen_stites@jmwilson.com). Writes monoline and in conjunction with D&O. Limits are available up to $5 million primary. Serves agents in IL, IN, MI, OH and WI. Underwriters include: Mt. Vernon Fire, Evanston, General Star and American Equity.
Zurich-American Insurance Group, One Liberty Pz., 30th Flr., New York, NY 10006; 212-748-2375; fax 212-619-0790. (Liza L. Reynolds, e-mail: lisa.reynolds@zurichus.com). Writes EPLI on a monoline basis and as part of D&O in a modified version. Currently writes up to $50 million in capacity. Offers coverage in all states.
The policy covers: (1) wrongful termination or treatment, including constructive discharge and whistle-blower as well as any adverse changes in employment terms and conditions; (2) discrimination for any protected classes, pursuant to federal, state or local statute or ordinance; (3) harassment including hostile environment against protected classes, as well as "quid pro quo" and "hostile work environment" for sexual harassment; and (4) employment-related invasion of privacy, employment-related defamation or employment-related wrongful infliction of emotional distress.
Zurich-American offers complimentary loss control services, including hotline fax services; employment labor law audit; employment practices training (covers issues in the workplace such as sexual harassment, ADA awareness, etc); corporate governance newsletter; and HR care publications. *
The author
Wallace L. Clapp, Jr., CPCU, is a consultant to the insurance industry, and is editor of The Insurance Marketplace, published by Rough Notes.
©COPYRIGHT: The Rough Notes Magazine, 1998