Beazley has launched a new consortium at Lloyd’s to bring increased capacity for wage & hour risks, expanding the choices available to U.S. organizations.
Building on Beazley’s experience in employment practices liability (EPL), and the 2015 launch of Workplace Protect, Beazley’s standalone wage & hour product, the Concorde Consortium will underwrite wage & hour risks on a surplus lines basis.
This coverage specifically covers claims made under the Fair Labor Standards Act (FLSA), which are excluded from most EPL policies. Limits up to $25 million are available for the costs of defending and indemnifying US organizations that are alleged to have violated their obligations under wage & hour law, such as
- the non-payment or under-payment of wages (eg minimum wage, failure to pay meal & rest breaks or overtime)
- the misclassification of a worker’s employment status (eg exempt / non-exempt status or claims made by contractors or “self-employed” workers).
The Concorde Consortium will underwrite on both a primary and excess basis. The Consortium anticipates that the majority of risks will be for organizations with more than 5,000 employees, but can accomodate organizations with 10,000 or more employees.
The Consortium is led by Beazley whose underwriters will quote and bind 100 percent of all risks. It complements Beazley’s existing Workplace Protect policy, under which limits of up to $10 million are available. Companies can select either stand-alone wage & hour cover or incorporate it into their EPL policy.
The other member of the Concorde Consortium is Hiscox, with additional capacity being provided by Beazley’s special purpose syndicate 5623.
Beazley plc is the parent company of specialist insurance businesses with operations in Europe, the U.S., Canada, Latin America and Asia. Beazley manages six Lloyd’s syndicates. Beazley’s underwriters in the United States focus on writing a range of specialist insurance products. In the admitted market, coverage is provided by Beazley Insurance Company, Inc., which is licensed in all 50 states. In the surplus lines market, coverage is provided by the Beazley syndicates at Lloyd’s.
Beazley lines of business include professional indemnity, property, marine, reinsurance, accident and life, and political risks and contingency business.
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