The Chubb Group of Insurance Cos. has broadened its employment practices liability (EPL) coverage by offering a solution for companies concerned about late claim reporting of Equal Employment Opportunity Commission workplace discrimination charges. The endorsement permits EPL customers to report EEOC charges anytime during the policy period. If the policy is renewed with Chubb, it offers an additional reporting window of 180 days after the expiration of the initial policy period. In addition, the endorsement includes “most favorable jurisdiction” language to determine, where allowable, whether the reporting of an EPL claim is timely.
Chubb also has created two endorsements to help EPL customers mitigate the costs of employee privacy breaches and workplace violence incidents. These two endorsements are intended for small to mid-size organizations that require less coverage for these exposures than the coverage provided by more expensive stand-alone insurance policies.
Early Claim Incentive Endorsement
“More than 80,000 charges of workplace discrimination or harassment are filed each year with the EEOC, and many companies fail to recognize that these charges are considered claims under their EPL insurance policies and need to be reported to their insurance company in a timely manner,” said Catherine Padalino, worldwide EPL product manager for Chubb Specialty Insurance. “When a charge is not reported as required by the terms of the policy, insurance companies may deny these claims for late notice.” But Padlino says the new Chubb endorsement will help EPL customers wtih a solution to this issue.
Despite the new endorsement, Padalino said Chubb will continue to encourage employers to report EEOC charges as soon as possible. In 2007, the company introduced an optional Early Claim Reporting Incentive Endorsement for EPL policies. This endorsement provides customers that notify Chubb within 15 days of an employment claim, including administrative charges, with a 10 percent reduction (up to $50,000) in their deductible/retention amount.
Violation of Employee Privacy Endorsement
The new Violation of Employee Privacy Endorsement offers defense cost coverage when an EPL customer is sued because it failed to secure an employee’s personal information, such as Social Security number, employee benefit account information or health information. It also provides coverage when an employer fails to notify an employee, as required by law, that his/her personal information was accessed by an unauthorized person or organization.
“Just like security breaches relating to customer information, unauthorized access to employee personal information can also have damaging effects for a company,” said Padalino. “State and federal laws require companies to protect the personal information of their customers as well as their employees.”
Workplace Violence Expense Coverage Endorsement
The Workplace Violence Expense Coverage Endorsement provides insurance coverage for hiring a security consultant, public relations consultant, forensic analyst or security guard service or conducting a counseling seminar for employees after an incident.
“Today, more employers have formal programs to address how their managers and employees can help prevent violence in the workplace,” said Padalino, “but many are not prepared to handle such incidents or the resulting financial burden.” In 2007, about 16 workplace deaths resulted from assaults and other violent acts every week in the U.S. workplace, according to the Bureau of Labor Statistics.
Source: Chubb Group of Insurance Cos.
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