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| October 2007 |
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| Have a question about this issue of the Newsletter? Then why not email us! |
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| SPOTLIGHT ARTICLE |
Will your agency have a claim?
If you have a claim, will you have coverage?
Why you need Employment Practices Liability Insurance (EPLI):
- A private company is more likely to have an Employment Practices claim than a General Liability or Property claim.
- Almost 75% of all litigation against corporations involves employment disputes
- 65% of employers who have fired an employee have been hit with a lawsuit
- The average cost to defend an Employment Practices claim is $150,000 and the median award is $250,000
- Over 40% of Employment Practices claims are brought against companies with under 100 employees
Get a quote anytime and anywhere you can connect to the internet.
Go to www.fwins.com, WEB QUOTING SYSTEM to quote.
Dispelling three myths of
Employment Practices Liability Insurance
Myth #1
EPL exposure is no greater today than it was in the past.
Reality:
The 1991 amendments to the Civil Rights Act and the passage of the Americans with Disabilities Act gave employees the ability to seek jury trials and obtain punitive damage awards for employment claims.
Most lawsuits today contain tort causes exempt from damage caps which can prevent summary motion dismissal leading to greater defense expenses.
Myth #2
Employers are protected by written employment procedures or relying on their human resource department.
Reality:
Even the best written procedures and human resource departments cannot prevent an employment claim. Employers must still defend themselves even if a claim is frivolous. Defense costs alone can jeopardize a small firms financial stability.
Myth #3
Employers are already protected under other insurance policies.
Reality:
Commercial General Liability policies contain exclusion CG2147 which excludes all employment related claims. Umbrella and Workers Compensation policies also have employment related practices exclusion. EPL endorsements to these forms provide inadequate coverage and erode limits of liability.
Recent Employment Claims
Internet Liability
There is an escalating trend of litigation involving electronic communication based on workplace e-mails or materials downloaded from the internet. The New Jersey Supreme Court ruled an employer may be liable for workplace harassment resulting from e-mail postings if it fails to take remedial action.
Sexual Harassment
An assembly line worker was awarded $20 million after she claimed sexual harassment by coworkers.
Wrongful Termination
Four employees who were fired after being video-taped eating candy that had been damaged in shipping were awarded $20 million after suing for wrongful termination and libel because the company used the videotape in a training film.
Disability Discrimination
An employee with a kidney condition that required dialysis was awarded $2.14 million when the jury found the employer did not offer six months additional paid leave as a reasonable accommodation as outlined in its own written policy.
Retaliation
A manager who claimed she was discriminated against because of her sex and retaliated against when she complained of the discrimination was awarded $80.7 million.
Third Party Liability
A Jewish family sued a prestigious South Florida country club for religious discrimination for denial of membership. Defense costs and settlement were in excess of $500,000.
Indication for 10 full time employees; For Profit Employment Practices Liability Limit Options
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$5000 |
$10,000 |
| Limit of Liability |
Retention |
Retention |
| $100,000 |
$745 |
$744 |
| $250,000 |
$1005 |
$1004 |
| $500,000 |
$1228 |
$1228 |
| $1,000,000 |
$1489 |
$1488 |
| $2,000,000 |
$2489 |
$2488 |
Retroactive date is Inception Date of Policy
Can you afford not to buy coverage & sell this coverage to your insureds?
Get a quote anytime and anywhere you can connect to the internet. Go to www.fwins.com, WEB QUOTING SYSTEM to quote.
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| ONLINE QUOTING |
You asked for it, HERE IT IS!
Get a quote anytime and anywhere you can connect to the internet. Go to www.fwins.com, WEB QUOTING SYSTEM to quote:
- U.S. Liability
- Community Associations
- Employment Practices Liability
- Non-Profit Directors & Officers
- Comprehensive Personal Liability
- 1-4 Family Dwellings
- Personal Umbrella
- Condo/ Renters and Vacant Buildings
- RLI Personal Umbrella
- American Modern All Products
- American Reliable
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| CONGRATULATIONS TO OUR PRIZE WINNERS! |
- CWS Championship Game Tickets Grace-Mayer Ins. and Greco Insurance Agency
- Iowa State vs. Nebraska Football Tickets Miller-Monroe Co. and Retailers Ins.
- PIA-NE Booth Prize Heidi Vescio, United Insurance.
- IIAN Booth Prize Judy Klusman, Midwest Regional.
- IIAN Golf Prize Steve Simon, Miller-Monroe.
- Winners of the football contest (IA State vs. Iowa)
- Doubleday Insurance Ankeny
- Sandholm Insurance Dayton
- TrueNorth Insurance Cedar Rapids
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| THREE YEAR POLICIES |
Three year policies for the following products:
- Non Profit Directors and Officers
- Community Association Directors and Officers
- Employment Practices Liability
Featured Advantages:
- Annual Installments
- Aggregate Limits Reinstated Annually
- 15% commission on above three products
- Minimized touches per policy
- Increased Profitability
- Non-Profit Policy has occurrence coverage for former board members.
- Defense outside of limit
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| DETECTIVE AND SECURITY SERVICES |
Capitol Insurance wants to write your next
Detective & Security Agency.
Features from Capitol:
- Error and ommissions/professional liability coverage included at policy limits.
- Optional firearms coverage (for detectives only).
- Erroneous service of process
- Detective class includes:
- Cause & origin work
- Gathering & securing evidence
- Location of stolen property and more
- General liability, property, inland marine, crime and umbrella coverage.
- Umbrella liability limits available up to $5 Million
- Available on an admitted & non-admitted basis
- Assault or battery coverage
- Care custody, control coverage
- Preferred pricing & discounts are available
Please contact your underwriter for additional information.
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| AMERICAN MODERN FOR VACANT HOMES/MOBILE HOMES |
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Why Should You Use
American Modern For
Vacant Homes/mobile Homes?
Iowa - Nebraska
Competitive
- Rate/Quote/Submit
- Vacant Available 3, 6 month policies automatically renew
- Vacant homes under renovation are now eligible
- Older homes (prior to 1960)
- Values under $300,000
- Protection classes 1 through 10
- Quote us for all your manufactured home risks, "ESPECIALLY" these...
- Rental and Tenants risks
- Older customers
- Newer homes
- Contact hwoods@fwins.com for a User ID/Password
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| FREE CE CREDIT - (IOWA ONLY) |
We will come to your agency and put on our 2 hour seminar Understanding the E&S Market.
- We must have 5 or more attend
- Agency volume
Please email jtrager@fwins.com for more information.
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| LIQUOR LIABILITY HELP FOR AGENTS (IOWA) |
Alcoholic Beverages Division (State of Iowa) Electronic Licensing User Guide
- Visit: www.IowaABD.com and click on the "E-Licensing" link along the left side of the page.
- It says "click here" to download an Electronic Licensing User Guide booklet. The booklet contains a list of the various licenses, permits and privileges and step-by-step instructions for creating an account, license applications and renewal, license transfers, Sunday sales and outdoor service privileges.
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