SFM Launches Employment Practices Liability Coverage in Midwest

Bloomington, Minn., workers’ compensation specialty carrier SFM Companies has begun insuring employers in the Midwest against the risk of employment practices liabilities, protecting them from high legal defense costs and giving them the ability to better manage difficult employee situations, company officials said.

SFM’s launch of employment practices coverage comes on the heels of a report released in March by the U.S. Equal Employment Opportunity Commission showing that employment practices charges against employers rose steeply in 2008 to record highs.

Charges of age discrimination rose 29 percent. Charges of employer retaliation, sex and religious discrimination rose significantly. The total number of charges in 2008 increased 15 percent from 2007 and 26 percent from 2006, according to EEOC data.

Charges of employer retaliation rose 23 percent and were involved in 34 percent of cases against employers in 2008.

Bob Lund, president and CEO of SFM, said SFM’s workers’ compensation attorneys and claims specialists see a growing number of work-injury claims that involve other employment issues.

“There is an interplay between the employment issues that arise in a workers’ comp claim and the issues that can give rise to a charge of discrimination or retaliation. A charge of retaliation, for instance, may be brought by an injured employee who claims he was wrongfully discharged by his employer. We’re seeing more situations like that, and often they include additional charges such as age discrimination,” Lund said.

SFM has designed its employment practices coverage for employers with less than 250 employees, an underserved market that is typically more vulnerable to employment practices charges.

SFM is partnering with Hartford Steam Boiler and Insurance Co., a specialist in employment practices, to offer the coverage and give employers access to a pool of specialized resources including self-assessments and model employment policies.

Source: SFM Companies, www.sfmic.com

Topics Workers' Compensation New Markets