Responding to increasing pressure of U.S. immigration law enforcement on California’s construction companies, San Francisco-based Jansen & Hastings has launched ConstructINsure. The product provides cover against defense costs for alleged wage and hour (W&H) and 1986 Immigration Reform and Control Act (IRCA) violations, as well as employment practices liability insurance coverage.
Coverage parameters include:
*Can be provided for any sized Californian construction firm;
*Standard EPLI coverage with third-party extension;
*Limits up to $5 million;
*Defense costs outside the limits – up to $1 million in addition;
*Wage and hour defense costs coverage sublimit;
*IRCA defense costs coverage sublimit;
*Risk management costs are inclusive within the premium;
*Minimum premium is $3,000; and
*Minimum retention is $2,500.
According to Jansen & Hastings, the U.S, Immigration and Customs Enforcement (ICE) agency is taking an increasingly hard line on employers who knowingly hire illegal aliens. In California, under the IRCA legislation and W&H rules, directors of general and subcontractor firms can be imprisoned for up to 10 years, or receive substantial fines, increased scrutiny is concerning many companies.
“Builders have been calling the National Association of Home Builders complaining about an increase in raids on sites and more onerous Form I-9 audits to assess employment eligibility status. They are reporting ‘challenging’ experiences with ICE agents who are fostering the impression that general contractors may also have some responsibility for their subcontractors’ hiring practices,” said Kevin Hastings, Jansen & Hastings manging director.
In addition to this increased coverage, ConstructINsure provides specialist risk management services at underwriters’ expense through DBH Resources Inc., to help the insured’s human resources department deal with such challenging exposures.
Source: Jansen & Hastings
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