Wage & Hour Coverage - Does your Employment Practices Liability Have It?

Wage & Hour coverage should be a part of your Employment Practices Liability Policy!  Wage & Hour Claims arise from employees’ or former employees’ allegations of violations of laws (Federal and/or State) of how they were or were not paid.  Such a claim would bring forth an allegation of unpaid overtime, unpaid vacation time, etc.  This is also where it is important that your employees are classified correctly as “Exempt” status or “Non-Exempt” status, which affects how wages are handled.  If an employee is classified incorrectly, the case can become quite technical and defense costs can skyrocket.  These cases can also be very expensive if settled.

 

Wage & Hour Coverage can be included in the policy form or added by endorsement.  Some carriers will charge additional premium for this coverage.  It is also, as a general underwriting rule, sublimited, to a limit of $100,000 or $250,000 for example, due to the nature of the claims being costly and complex.

 

Check your policy today to be sure that you have this important coverage.  Contact our office for more information or for an application for Employment Practices Liability policy.

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