Wage and hour liability

  • Bermuda form allows broader grant of coverage, unaffected by US state insurance regulation.
  • Broad definitions:
    • Wage and Hour violation includes:
      • Violations of the FLSA and any similar federal, state, or local laws including California’s PAGA claims
      • Misclassification of employees (including misclassification of employees as independent contractors)
      • Inaccurate payment of wages, including tip credit issues
      • Incomplete pay stub disclosures
      • “Donning and doffing” claims
      • Non-compliance with meal and break period requirements
      • Failure to pay wages for off-the-clock work
    • Claim – includes lawsuits, government administrative proceedings, mediations, arbitrations, or other ADR proceedings
    • Insured – includes entities in which the insured owns >50% of the voting stock or has controlling interest
    • Loss – includes:
      • Pre- and post-judgment interest
      • Attorney fees
      • Opposing counsel fees
      • Statutory liquidated damages
      • Punitive and exemplary damages
      • Statutory fines and penalties
  • Indemnity coverage (settlement of claims or judgments) and defense costs
  • Insured retains the right to select defense counsel
  • Narrow conduct exclusion – triggered only by final adjudication of willful violations; defense costs covered until the exclusion is triggered
  • Insured may settle claim within the retention without insurer’s consent
  • The insurer will advance payments for loss on a periodic basis prior to final resolution of claim
  • Automatic coverage of new subsidiaries subject to a threshhold
  • Bordereau reporting for most claims, with as soon as practicable notification for class actions
  • 30-day post policy period final wrap up reporting of claims

Target classes
  • Companies with US employees
  • No headcount limitations
  • All industry classes considered including:
    • Retail
    • Food service
    • Hospitality
    • Healthcare
    • Construction

  • $25m limits available
  • Primary or excess basis
  • Minimum $1m retention

Executive leadership

Jim Gray
Executive Underwriting Officer, Professional Liability

Product leadership

Sharon Lynch
Senior Director,
Management Liability

Joey O'Dea
Managing Director,
Professional Liability