Copyright 2009, The Hartford Steam Boiler Inspection and Insurance Company
Employment Practices Liability
&
Identity Recovery
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Copyright 2009, The Hartford Steam Boiler Inspection and Insurance Company
Conditions of Use - continued
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Copyright 2009, The Hartford Steam Boiler Inspection and Insurance Company
Conditions of Use - continued
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Employment Practices Liability
&
Identity Recovery
Dial In: 1-877-298-8255
Access code: 7225220
Copyright 2009, The Hartford Steam Boiler Inspection and Insurance Company
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Copyright 2009, The Hartford Steam Boiler Inspection and Insurance Company
I. Employment Practices Liability Insurance
¾ The Need for Employment Practices Liability
¾ GNY EPL Coverage Approach
II. Identity Recovery Insurance
¾ The Need for Identity Recovery Insurance
¾ GNY IDR Coverage Approach
Today’s Agenda
Launch Date
Copyright 2009, The Hartford Steam Boiler Inspection and Insurance Company
EPL Coverage
Protects Employers from
Claims Brought by Employees,
Applicants for Employment or
Recognized Volunteers
Discrimination
Wrongful Termination
Harassment, including Sexual Harassment
Liability Damages and
Defense Costs
Employee includes Full-time,
Part-time, Temporary &
Seasonal Employees
EPLI Statutes/Exposures
Title VII
Equal Pay Act
Age Discrimination in
Employment Act
(ADEA)
Americans with
Disabilities Act (ADA)
Copyright 2009, The Hartford Steam Boiler Inspection and Insurance Company
EPLI Statutes/Exposures
Family and Medical
Leave Act (FMLA)
Fair Employment
Practice Statutes
Common Law Torts
Employment Liability Claims
Know the risks!
More than 1/2
are made against small
businesses.
Copyright 2009, The Hartford Steam Boiler Inspection and Insurance Company
The Risks Are Real
100,000+ charges filed
75% of claims groundless
52% of charges are against small businesses
Leading industries = Retail, manufacturing, food service
Average EEOC complaint > one year to resolve
Percentage of EPL claims against small businesses
Small Co's 52% Other
48%
Claims Settlements
81%
settle between $22,400-$40,500.
Copyright 2009, The Hartford Steam Boiler Inspection and Insurance Company
2005 EEOC/FEPA Statistics
0% 5% 10% 15% 20% 25% 30% 35%
Racial
Gender
Age
Disability
Sexual Harassment National Origin
Religious
Today’s Evolving Workplace
Diverse workforce
Structural changes
Broadened
employment laws
Evolving regulatory
and judicial
environment
Copyright 2009, The Hartford Steam Boiler Inspection and Insurance Company
What The Business Owner
Thinks About EPL Coverage
40%
believe they can not
afford
EPL Coverage
that they need.
Workplace Complaints That Worry The
Small Business Owner Most
#1: Discrimination: Age,
sex or race
#2: Sexual harassment
#3: Wrongful termination
Copyright 2009, The Hartford Steam Boiler Inspection and Insurance Company
Guess What Happened To Me?
“Legal fees cost about
$25,000, not to mention our
lost time and productivity. It
broke my heart — and my bank
account”
Steve, tool shop owner sued by a longtime employee for wrongful termination
“ I was stunned to learn that
defending against a suit could
cost upwards of $40,000.”
Michael, telecommunications firm owner
Coverage Availability
Monoline basis
¾ Large Limits & deductibles
¾ High Premium
¾ Extensive underwriting
¾ Chubb, AIG, Zurich
Copyright 2009, The Hartford Steam Boiler Inspection and Insurance Company
Emerging Markets
Combined with
other coverages
¾D & O
General Liability
¾ Nominal Sublimit
¾ Meaningful sublimits
GNY’s
EPL Coverage
Copyright 2009, The Hartford Steam Boiler Inspection and Insurance Company
Portfolio EPL Goals . . .
Designed for Small Business
Broad
Meaningful
Affordably Priced
Seamless – Requires minimal
additional underwriting data
EPL Program Synopsis
Coverage Part to CPP:
Form #: “EPL AS 10 07”
Up to 250 Employees
Auto added for up to 50 employees
Referrals for 51- 250 employees
$100,000 Annual Aggregate limit/default
$10,000/claim deductible/ default
Copyright 2009, The Hartford Steam Boiler Inspection and Insurance Company
Referral Options
Limit Options:
$250,000
$500,000
$1,000,000
Employees 51-250
Policy premium over
$100,000
Refer to:
eplquote@hsb.com
Pricing Matrix
Habitational: 0.6% of CPP Liability Premium
Non-habitational: 1.3% of CPP Liability Premium
Minimum: $50/policy
Copyright 2009, The Hartford Steam Boiler Inspection and Insurance Company
EPLI Coverage Summary
Defense within the Limits
Claims made
Duty to Defend Coverage
Extended Reporting Period available
No coverage for Prior Acts or Known Acts
EPL Claims Service and Loss Prevention
Dedicated EPL Claim
Specialists
Premier EPL Panel
Attorneys
Online EPL Loss
Prevention Program
GNY Risk Improvement
Copyright 2009, The Hartford Steam Boiler Inspection and Insurance Company
EPL Product Strategy
Ease of Doing Business – “Portfolio Underwriting” for EPL coverage streamlines underwriting & processing
GNY Paper – Seamless Attachment Approach
Minimal Information Gathering to Protect Profitability & Sustain Low Portfolio Pricing
Best-in-Class Claims Adjustment & Loss Mitigation
Web Based Education & Loss Prevention Tools for Policyholders
Integrated Marketing, Training & Communications Tools for a Clear, Consistent Marketing Message
Benefits to Insured
Affordable, Broad EPL Coverage
Meaningful Limit Options
Eliminated Coverage Gaps
Access to EPL Claims Specialists
Access to Premier EPL Panel Attorneys
Access to Web-Based EPL Loss Prevention Programs
Copyright 2009, The Hartford Steam Boiler Inspection and Insurance Company
Benefits to Producers
No Additional Underwriting Data Needed
Better Protection from E&O Exposure
Product Differentiation
Access to Web-Based EPL Loss Prevention Programs
Additional Commission Income
Producer Marketing Support
Training Webinars
Educational Webinars
EPL Website
Variety of Marketing Materials Available
Copyright 2009, The Hartford Steam Boiler Inspection and Insurance Company
Identity Recovery Program
Why is Identity Recovery an Essential
Coverage for the CPP Policyholder?
Copyright 2009, The Hartford Steam Boiler Inspection and Insurance Company
WHAT IS IDENTITY THEFT?
Wrongful use of someone’s personal or
financial information
to commit fraud or other crimes
Creative Thieves
Identity
Thieves Steal
in Many Ways
Copyright 2009, The Hartford Steam Boiler Inspection and Insurance Company
How Could Identity Theft Affect You
and Your Customers?
Credit Cards…
Loans…
Bank Accounts
Ways you’d never
imagine!
It is personal...
Confusion & Frustration
Time Consuming
Victim Made to Feel
Like They Did
Something Wrong
Copyright 2009, The Hartford Steam Boiler Inspection and Insurance Company
Victims Must Take All The Responsibility To…
Restore their credit to pre-theft status
Provide proof of fraudulent charges
Restore their identity records
Identity Theft Leading Cause of U.S.
Consumer Fraud
It’s getting worse
215,177 Complaints in 2003
255,565 Complaints in 2005
Younger Victims
Percent of ID Theft victims
under 18 has doubled over two
years
Copyright 2009, The Hartford Steam Boiler Inspection and Insurance Company
So… What’s The Financial
Cost to The Victim?
Out-of-Pocket Expenses
60 Hours on Average
$1,200 Out-of-Pocket Expenses
Legal Fees
Credit Bureau Reports
Loan reapplication fees
Identity Recovery Coverage
Copyright 2009, The Hartford Steam Boiler Inspection and Insurance Company
Identity Recovery Coverage
Two Main Components
1. Identity Recovery (Assistants)
and Identity Restoration
(Licensed Investigators) Service
2. Expense Reimbursement
Insurance
What Does it Cover?
9Recovery Services
9Out-of-Pocket Expenses
9Lost Wages/Child & Eldercare
9Mental Health Counseling
Copyright 2009, The Hartford Steam Boiler Inspection and Insurance Company
Who is the Insured?
“Identity Recovery Insured” means the following:
•
• Sole ProprietorsSole Proprietors
•
• PartnersPartners
•• CEOCEO
•• Employees with 20% OwnershipEmployees with 20% Ownership
•• Directors & Officers of Condominium Directors & Officers of Condominium Associations
Associations
IDR Coverage Synopsis
Endorsement/ “interline” coverage part
CPP coverage part: IDR 10 07
Auto added
No referrals
$15,000 Annual Aggregate Limit
$500 aggregate deductible/insured
Copyright 2009, The Hartford Steam Boiler Inspection and Insurance Company
What About Pricing?
Î Included for no additional premium
As an Producer,
What does it mean to you ?
Fill the demand –
address a growing concern of your clients Differentiation – distinguish
your products from
competitors
Automatic Coverage – top tier coverage and service available at no additional premium
Customer Acquisition and
Retention
Attract new customers while retaining existing ones
•
Copyright 2009, The Hartford Steam Boiler Inspection and Insurance Company
Agency Support Resources
Producer Meetings
Educational Webinars
Variety of Marketing Materials
Available
Q&A
Copyright 2009, The Hartford Steam Boiler Inspection and Insurance Company