EPLI – Business Insurance Coverage

New Wage Transparency Laws and Insurance. What Employers Must Know

paperless — Thu, 31 Jul 2025 21:24:30 +0000

Across the United States, wage transparency laws are gaining momentum. In 2025 alone, five states – Illinois, Minnesota, New Jersey, Vermont, and Massachusetts – are enacting new legislation that changes how employers must present job openings. These laws aim to promote fairer workplaces by requiring businesses to disclose salary ranges and benefits in job postings. While the intention is to close wage gaps and foster equity, the legal and insurance implications are more complex than they might seem at first glance.

What Are Wage Transparency Laws?

At their core, wage transparency laws require companies to include clear compensation details in job advertisements. This typically includes salary ranges and sometimes benefits. The goal is to help job seekers make informed decisions and to reduce hidden disparities in pay, particularly those related to gender and race.

However, the requirements vary by state. For instance, Vermont’s law applies to companies with as few as five employees, while other states apply the rules to businesses with 50 or more. It’s also not just about where a business is located. If an employee reports to a manager in a state with these laws, the business may be subject to those regulations, even if it is based elsewhere.

Why Employers Should Take Notice

Failing to comply with wage transparency laws isn’t just a policy oversight – it can be a legal and financial risk. In several states, including California and Washington, job seekers and employees can sue companies directly. This is known as a “private cause of action,” and it opens the door to lawsuits without waiting for regulatory agencies to step in.

Washington State offers a powerful example. Initially, its law allowed damages of $5,000 per violation, plus attorney’s fees. This led to more than 100 class action lawsuits, with some settlements reaching over $4 million. In May 2025, Washington revised its law to provide more flexibility to businesses. Employers now have a five-day grace period to correct violations before a lawsuit proceeds. The new version also limits damages to a range of $100 to $5,000 per violation. However, these changes only apply to future cases – lawsuits filed under the earlier version still follow the original, stricter penalties.

What About Insurance?

One major area of confusion for employers is insurance coverage. Many assume their existing policies will cover wage transparency claims, but that isn’t always the case.

Most turn first to Employment Practices Liability (EPL) insurance, which generally covers issues like harassment, discrimination, or wrongful termination. Whether wage transparency violations fall under this depends on how the policy defines “Wrongful Employment Practices.” Some may include it, others may not.

Another option is Directors and Officers (D&O) insurance. These policies, especially for private companies, often provide broader protection that could include employment-related claims. However, there are important limitations. For instance, public company D&O insurance typically only covers securities claims. Additionally, many policies contain “insured vs. insured” exclusions, which may rule out lawsuits brought by employees.

To address the uncertainty, some insurers are creating policy endorsements that specifically address wage transparency risks. These may either exclude coverage or provide limited protection, often just for defense costs. While not comprehensive, having even partial coverage could be critical in the event of a claim.

Steps Employers Should Take Now

Review Your Job Postings: Make sure all your job advertisements are up-to-date and compliant with the wage transparency laws in any state where your employees work or report. Don’t overlook remote positions – if the supervisor is in a regulated state, the law may still apply.
Assess Your Insurance Policies: Take a close look at your EPL and D&O insurance. Are wage transparency claims covered? Are there exclusions that could leave you exposed? If you’re unsure, speak with your insurance broker or legal counsel.
Act Quickly on Legal Notices: If your business receives notice of an investigation or lawsuit related to wage transparency, inform your insurance provider right away. Failing to report promptly could jeopardize your ability to receive coverage.

The Path Forward

Wage transparency laws are not just a passing trend. They represent a broader shift toward transparency and fairness in the workplace. With more states expected to adopt similar laws in the coming years, staying proactive is the smart move for any employer.

Don’t wait for a lawsuit or fine to take action. Review your compensation disclosure practices, check your insurance policies, and get advice from your legal and insurance advisors. Preparing now could save your company from costly legal trouble later.

Call us at 877-239-0067 if you are looking for D&O and/or EPL insurance or click this link and fill out our D&O/EPL application online.

Explaining Employers Liability Exclusion

paperless — Tue, 20 Jul 2021 18:42:37 +0000

Even when you follow all the necessary safety guidelines and precautions, accidents and worker injuries can happen on a construction jobsite. And when you have numerous sub-contractors involved, who is held liable for paying worker injury claims can get complicated quickly. This article details how the Employers’ Liability exclusion works in a Commercial General Liability policy through a hypothetical claims scenario and why its important to thoroughly review and understand this wording, especially when changes are proposed.

Employee Injuries – Who Pays?

Employee Injuries and Exclusive Remedy. When employees are injured arising out of and in the course of employment, that employee’s remedy is usually limited to workers’ compensation benefits as prescribed under the applicable workers’ compensation law. The employee is very often prohibited by the workers’ compensation statute from bringing a tort¹ claim or suit against his or her own employer – we understand this concept as the “exclusive remedy” doctrine. But exclusive remedy applies only between the employer and employee. This doctrine does not prohibit an injured employee from bringing a tort claim or suit against a third party, such as a landlord or a general contractor, even if that employee collects workers’ compensation benefits.²

Managing Injuries to the Employees of Others. Of course, third parties are well aware that they are likely to be targeted with claims or suits by the injured employees of others. The traditional way³ to manage this situation has been for the third party to require the others to indemnify or reimburse the third party for damages resulting from employee injuries of others. This requirement to indemnify is known as “contractual indemnification” because the obligation to indemnify the third party is found within a written contract or agreement – specifically a hold harmless and indemnification clause of that written contract or agreement.

Hypothetical Claim Scenario – Employers’ Liability Exclusion in Action

Background. General contractor Day Builder’s, Inc. has entered a trade contract with subcontractor Knight Plumbing, LLC, in which Knight agrees to hold harmless and indemnify Day for jobsite injuries that result, at least in part, from Day’s fault. In essence, Knight has assumed liability for injuries to its own employees that would be partly the fault of Day. In other words, the hold harmless and indemnity agreement used here is a risk financing technique in which Knight has agreed to pay damages for which Day has some responsibility. Subsequently, an employee of Knight, Jonathon, is seriously injured on the jobsite. Jonathon is paid workers’ compensation benefits, including his medical expenses and lost wages (subject to the state weekly maximum).

Third-Party Claim. Because his workers’ compensation benefits do not pay his full damages, such as pain and suffering and loss of consortium, Jonathon brings a tort suit against Day Builder’s, Inc. He alleges that Day breached its duty to keep the jobsite safe. Upon learning of Jonathon’s lawsuit, Knight’s workers’ compensation insurer files a lien against the damages that Jonathon may recover from Day. The suit against Day by Jonathon is a third-party claim.

Action Over Claim – Contractual Indemnity. When Jonathon’s suit is tendered to Day, Day in turn demands that Knight hold harmless and indemnify Day for the damages resulting from Johnathon’s injuries. In its demand for indemnity, Day cites the specific wording of the hold harmless and indemnity clause in the trade contract between Knight and Day. This contractual indemnity claim by Day is known as an “action over” claim.

Action Over Claim – Common Law Tort Claim. In addition to the demand for contractual indemnification, Day also tendered a common law tort claim against Knight, alleging that Knight was at fault in causing injury to Jonathon by not providing appropriate safety equipment to Jonathon. In other words, Day is asserting that even if it had some fault in causing Jonathon’s injuries, Knight also had some fault, and that Knight is obligated to pay back Day for some or possibly all of the damages resulting from Jonathon’s injuries.

Knight’s Insurance. Knight has tendered the contractual indemnification claim and common law tort claim to its Commercial General Liability (CGL) insurer, Fidelity Fiduciary Insurance Company (FFIC). In addition, Knight has tendered the common law tort claim to Knight’s workers’ compensation and employers’ liability insurer, Acme Insurance Company, Inc. (AIC).

The CGL Policy. The CGL purchased by Knight is the ISO Commercial General Liability Coverage Part with an edition date of April 2013, and a number of endorsements not pertinent to this claim. In determining FFIC’s coverage position, the claims adjuster recalls that the CGL policy is never intended to pay for injuries to the employees of the named insured – in this case, Knight Plumbing, LLC. After a quick look at the policy’s Employers’ Liability (EL) exclusion (exclusion e), the adjuster sends a coverage denial letter on behalf of FFIC to Knight, denying the coverage for the claim in its entirety (both the demand for contractual indemnity and for common law tort claim) based on this exclusion.

The EL Exclusion. A closer reading of the CGL’s Employers’ Liability exclusion, found within the body of CGL itself, does exclude bodily injury to an employee of the insured “arising out of and the course of: Employment by the insured.”⁴ Further, the penultimate paragraph of the exclusion states that the EL exclusion applies “even if the insured is liable as employer… to share damages with or repay someone else who must pay damages because of the injury.”⁵

In this scenario, both the contractual indemnification claim and the common law tort claim are demanding that Knight reimburse Day some or all of the damages payable to Jonathon from his injury – falling directly within the penultimate paragraph quoted above.

Claim Adjuster’s Mistake. While it may appear that the complete denial of coverage is correct, it is wrong because the adjuster failed to read the last paragraph on the exclusion. It is an exception to the exclusion that states “This exclusion does not apply liability assumed by the insured under an ‘insured contract.’”⁶ The importance of this sentence is enormous, and easily overlooked or changed.

Insured Contract Exception. By virtue of the hold harmless and indemnity agreement, Knight had indeed assumed the liability of Day in an “insured contract”⁷ as defined in the CGL policy. The result is that the Employers’ Liability exclusion did not apply to the demand for contractual indemnification – Knight’s CGL policy applied to the extent that Knight was liable to Day according to the terms of the agreement.

However, the adjuster was correct in denying coverage for the common law tort claim against Knight as the liability that Day sought to impose on Knight was “liability imposed by law in the absence of any contract or agreement”⁸ and thus completely excluded by the Employers’ Liability exclusion. In short, the employers’ liability exclusion of the CGL applies to tort claims.

AIC’s Response. You may recall that Knight tendered the common law tort claim to its Workers’ Compensation and Employers’ Liability insurer – AIC. The likely defense asserted by AIC on Knight’s behalf would involve AIC challenging Day’s right to make a tort claim against Knight in the first instance. Exclusive remedy commonly prohibits not only direct suits by an employee against an employer, but often prohibits tort-based action over claims.

The reason for the prohibition is that exclusive remedy is intended to relieve the employer from employee injury tort claims – whether brought directly by the employee or by third parties. However, if the common law tort claim was allowed to proceed, Employers’ Liability insurance, found in the Workers’ Compensation and Employers Liability insurance policy, that would have, subject to all its terms and conditions, defended the tort claim and paid damages on behalf of Knight if Knight was found legally obligated to pay damages for Jonathon’s injuries.

Conclusion

This article is intended to illustrate the importance of the “insured contract” exception to the Employers’ Liability exclusion in the CGL policy. Accordingly, attempts to amend this exclusion should be a red flag for any policyholder.

However, it is not unusual for an insurer to try and avoid this exposure entirely by removing the “insured contract” exception to the Employers’ Liability exclusion. Because the exception is but one sentence in a much longer exclusion, removal of the exception may go entirely unnoticed or unappreciated. Of course, as in the illustration above, this one sentence may be the difference between payment of damages and an uncovered claim.

Therefore, beware of changes to the Employers’ Liability exclusion of the CGL policy – and any similar changes to this exclusion in an excess or umbrella policy.

Sources

¹ A tort usually alleges a breach of duty, claiming the breach of duty caused the employee’s injury. The employee seeks damages that result from the injury. Negligence is the most common tort.

² Most workers’ compensation statutes allow the workers’ compensation insurer to place a lien on the damages recovered from third parties by the injured worker, but only to the extent of the workers’ compensation payments received. The intent is to prevent double recovery by the injured employee.

³ Additional insured status is also a very common way to manage the risk of the injuries to the employees of others. However, additional insured status does not apply to a demand for contractual indemnification. In other words, additional insured and contractual indemnification are independent remedies.

⁴ © Insurance Services Offices, Inc., 2012, CG 00 01 04 13 – e. Employer’s Liability.

⁵ Id.

⁶ Id.

⁷ The pertinent portion of the definition of “insured contract” is part f. “That part of any other contract or agreement pertaining to your business…under which you have assume the tort liability of another party to pay for ‘bodily injury’ or ‘property damage’ to a third person or organization.” © Insurance Services Offices, Inc., 2012, CG 00 01 04 13 – 9. Insured contract means:

⁸ 9. Insured contract means: part f. “Tort liability means a liability that would be imposed by law in the absence of any contract or agreement.”

This article was originally published by AmWINS Group, Inc. Legal Disclaimer: Views expressed here do not constitute legal advice. The information contained herein is for general guidance of matter only and not for the purpose of providing legal advice. Discussion of insurance policy language is descriptive only. Every policy has different policy language. Coverage afforded under any insurance policy issued is subject to individual policy terms and conditions. Please refer to your policy for the actual language.

Lowering the Risk of Sexual Harassment in Your Organization

paperless — Tue, 04 Sep 2018 22:04:22 +0000

UPDATE 08/30/2022: As of today we offer abuse and molestation coverage to all professions and services. Follow the link and answer only 2 questions to receive your accurate premium indication: Get Instant Abuse Insurance Indication Now

Allegations of sexual harassment have made headlines across virtually all areas of society: churches, entertainment, politics, businesses, non-profits, sports, and education. In October 2017, the #metoo hashtag was used by more than 4.7 million people on Facebook during the first 24 hours to disclose stories of harassment and abuse. Time magazine even named “The Silence Breakers” as its 2017 Person of the Year, recognizing those who came forward with their stories to help spark a nationwide movement to break the silence. The movement has resulted in countless executives being fired, public figures disgraced, and even criminal charges.

While the details of the sexual harassment allegations being brought to light may vary, the extent of sexual harassment in the workplace is significant. In a November 2017 poll by Quinnipiac University, 60% of women reported they had experienced sexual harassment, with 69% of those incidents taking place at work. Men have also been victims, with 17% of sexual harassment claims filed with the Equal Employment Opportunity Commission (EEOC) coming from men.

Four Steps to Reduce Risk
How can an organization lower the risk of sexual harassment in their workplace? PHLY recommends taking the following steps:

1) Be compliant with the law. Have a written policy that explicitly forbids sexual harassment as it is defined by the EEOC. Train all employees (including part-time and contract employees) on your policy and how they can respond to events they experience or observe. Assure employees that they will be protected against retaliation. Ensure all allegations are investigated and resolution reached in a timely and complete manner, with privacy respected for all parties. Finally, review your policy with legal counsel and/or third party human resources consultants.

2) Be alert. Ensure that your policy is communicated regularly and enforced consistently. Many organizations communicate their sexual harassment policies through annual training, and in some states this is mandated for management staff. Beyond the training, organizations must ensure that these policies are followed by all employees. Without consistent enforcement, training will not be effective. In a 2015 study, the EEOC stated that while trainings appear to help in educating what constitutes sexual harassment in the workplace, there is not clear evidence that the training changes attitudes or behaviors. Therefore, organizations must be actively engaged to identify sexual harassment and to enforce their own policies when harassment is discovered.

3) Start at the top. Sexual harassment is as much about corporate culture as it is about policies and procedures. Examining and changing corporate culture begins with senior leadership. Top executives need to examine their own attitudes and actions, be vocal advocates for anti-harassment efforts, and incorporate behaviors at the C-suite on down that shows respect for all employees and zero-tolerance for would-be harassers. In addition, diversity in management positions can help to increase awareness and promote an anti-harassment culture.

4) Be creative. Honestly assess your sexual harassment prevention efforts to determine if they are stale and ineffective, or accessible and current. Consider these ideas for breathing life into your anti-harassment efforts:

Employ an engagement survey that includes questions on how employees feel about their workplace environment with regards to sexual harassment
Review the harassment reporting process to ensure ease and anonymity; consider providing more than one channel for employees to report harassment incidents
Conduct a review of your management staff and human resources personnel to ensure that they are handling allegations of sexual harassment according to your policies and as effectively as possible
Review company events where alcohol is served: is alcohol necessary, is it served and consumed responsibly, and are employee behaviors in line with company policies during such events?
Review and change up your sexual harassment training – incorporate live elements if previous training was 100% computer-based, include a quiz to help ensure understanding, and consider updating your training materials
Identify additional resources you can share with managers regarding sexual harassment – including what to look for and how to handle complaints or allegations
Be prepared through table-top exercises; identify experts who can assist during the pre-investigation process, even before an allegation or claim presents itself

Consider getting $1,000,000 Sex Abuse and Molestation insurance policy. For qualified businesses, the premium starts from ~$1,000/yr and the coverage will also include general and professional liability. A standalone abuse and molestation coverage starts at around $2,500/yr plus applicable tax and fees. To get abuse and molestation insurance quote complete the Application for Small Business Insurance Coverage and mention “Include Abuse and Molestation” in the comments section.

Available Resources
Our insurance carriers can assist policyholders with implementing sexual harassment training, identifying additional resources for managers, and accessing legal expertise. If you have Employment Practices Liability Insurance coverage through Paperless Insurance, we will provide you with the access to a learning management system at no additional cost, with the following training modules, with no usage limitations:

Sexual Harassment and Abusive Conduct Training for Employees: Understanding and Preventing
Sexual Harassment Training: What Supervisors Need to Know (CA compliant)

To get a quote for abuse and molestations go to: https://www.paperless-insurance.com/abuse-and-molestation-insurance-quote-request/

IMPORTANT NOTICE - The information and suggestions hereby presented is for your consideration in your loss prevention efforts. They are not intended to be complete or definitive in identifying all hazards associated with your business, preventing workplace accidents, or complying with any safety related, or other, laws or regulations. You are encouraged to alter them to fit the specific hazards of your business and to have your legal counsel review all of your plans and company policies.

How to Conduct Reference Check Before Hiring New Employee

paperless — Thu, 12 Apr 2018 19:00:46 +0000

Before you sign a contract with a third-party logistics provider or even with a new cleaning service, you probably ask for some case studies, read reviews online, or at least check their BBB rating. Even when choosing a lunch spot for that important meeting with your soon-to-be big account, you would tap Yelp to see how many stars it has and read a review or two. Same approach is needed to reference check before hiring anew employee.

Any time you hire a new employee, you gain an opportunity and a risk. They could end up being your best team member, making a huge difference at your company… or they could be a bad hire that costs you time, money, and morale. Before you take the leap and extend an offer, asking the right reference check questions can help you make an educated decision. Follow this formula:

[process_steps type=”horizontal” size=”small” number=”5″] [process_step title=”get context” icon=”address-book”] [/process_step] [process_step title=”verify facts” icon=”drivers-license”] [/process_step] [process_step title=”give context” icon=”newspaper-o”] [/process_step] [process_step title=”uncover red flags” icon=”flag” icon_color=”#ff003f”] [/process_step] [process_step title=”assess fit” icon=”universal-access”] [/process_step] [/process_steps]

Gain Context and Verify Facts: Questions to Ask References First

Let’s say you’re about to hire Jane, but you’re wise and decide to call her references before extending an offer. After exchanging greetings with the reference and explaining why you’re calling, start with the following introductory questions to gain valuable context:

How do you know Jane?
In what capacity did you work with Jane?
How long did you work with Jane?

These questions should help you determine how heavily to weigh each reference’s answers in your hiring decision. Once you understand the person’s relationship to Jane, you can decide whether it makes sense to ask them to verify these important facts: dates of employment, job title(s), responsibilities, why Jane left (if applicable), and if Jane is eligible for rehire at that employer.

The aim here is to ensure that Jane has been truthful, but don’t just stop there. Head to the next section to uncover whether her references’ perceptions of Jane line up with her own ideas about her performance, strengths, and weaknesses.

[icon style=”lightbulb” color=”yellow”]Pro Tip: [/icon] Depending on the circumstances, and the reference’s relationship to your candidate, they may not have all the answers you need. If none of your candidate’s references can verify facts such as tenure and job responsibilities, you can usually call past employers’ main lines or HR departments to do so.

Assess Aptitude, Skills, and Fit: Five Types of Reference Check Questions

You can make a more informed hiring decision by asking the five types of reference check questions below. Insights from people who have worked with Jane can help you decide whether to hire her, better understand how to manage her, and plan for her first months on the job. Listen not only for red flags, but also for valuable nuggets on how to play to her strengths and plan for her weaknesses.

1. Offer Context (question 1)

Before you jump in, give the person some context about what you’re looking for by asking them the following question. This will set them up to answer the rest of your questions with a full understanding of what you need:

I’m considering Jane for [job title]. She’d be responsible for [responsibilities]. Do you think she could perform well in this role, and why or why not?

2. Gain an Understanding of Strengths and Weaknesses (questions 2-3)

Next, ask about her strengths and weaknesses. You probably asked Jane these same questions, but it can hard to give an honest answer about yourself. You’ll benefit by getting an outside perspective on Jane, especially from people who have worked with her.

When listening to the answers, keep in mind that most people have a few weaknesses. This doesn’t mean you shouldn’t hire them. Knowing Jane’s weaknesses ahead of time can give you ideas about how to best help her develop. And asking about Jane’s strengths can help you understand the immediate impact she could make, so you can plan what you’d like her to tackle during her first months on the job:

What are Jane’s weaknesses, and do you feel she could overcome them with adequate training?
What are Jane’s strengths and how did she use them?

3. Uncover Red Flags and Discover Whether the Candidate Will Be a Good Fit (questions 4-10)

This next set of questions can help you discover whether there are reasons not to hire Jane. And even if there aren’t any red flags, the references’ answers can help you prepare for how best to manage Jane and decide whether she’ll work well with your existing team and thrive in your office culture:

How did Jane handle challenges, whether pressure to meet a deadline, stress with a tough goal, or conflict with colleagues?
Could you describe Jane’s working style? What’s it like to work with her?
How well did Jane work with others?
Did Jane have any issues with colleagues and/or management?
Do you have any advice for how to manage Jane?
Did Jane prefer to work on her own or as part of a team?
What role did Jane take on when part of a team? (for example, leader, encourager, organizer, planner?)

4. Determine Potential for Future Growth (questions 11-12)

If you are looking to hire someone who can not only help your company grow but also grow with your company and take on more responsibility, then consider asking the following:

Would Jane make a good manager? Why or why not?
Was Jane promoted or given additional responsibilities at any point? Why or why not?

5. Ask Closing Questions (questions 13-15)

Give the reference one more chance to add anything that you should know but didn’t ask:

If you could work with Jane again, would you want to?
Is there anything else I should know about Jane that would help me make this hiring decision?
Can you think of anyone else I should speak to?

[icon style=”lightbulb” color=”yellow”]Pro Tip: [/icon] Keep in mind that Jane’s references may have busy schedules, so after you give them the introductory context about your open position, plan to ask them the most important questions first, based on your priorities for the role and any concerns you may have.

You may think that doing a reference check isn’t a great use of your time, especially if you’re busy. After all, who is going to give you the number for someone who might give them a bad reference? But the right references can provide a wealth of knowledge about everything from your next hire’s working style, to their potential for growth, so make the time to call them.

The knowledge you gain could not only save you from making a bad hire, but also help you better plan to welcome a talented new team member. Employees are an investment, so plan to make the most of them — from their very first day!

Is Your Website Compliant with ADA

paperless — Sat, 26 Aug 2017 21:57:40 +0000

In 1990, the Americans with Disabilities Act (ADA) was signed into law to give disabled people the same access to American life as those without disabilities. The Act is intended to give equal access to all Americans to all public spaces. The law was initially thought of as only applying to brick and mortar locations and couldn’t address access to the Internet since the Internet wasn’t fully commercialized until 1995. However, in response to a landmark case in Florida (Gil v. Winn Dixie), the court declared that Title III requirements of the law apply if the website is ‘heavily integrated’ with and serves as a ‘gateway’ to physical stores/services. The verdict was entered on June 12, 2017. As a result, companies are now finding themselves targets for ADA claims based on the inaccessibility of their websites and media by those who are disabled.

Consider this example: A blind or visually impaired person is currently able to navigate some websites using a ‘screen reader’ which will convert the content to a useable format. Their access could be audio or braille. However, not all websites have this functionality that would give them equal access to online information.

Another problem with some websites is the inability for keyboard navigation as an alternative to mouse navigation, which can be problematic for people with physical disabilities. This can be mitigated by adapting websites to allow for keyboard navigation.

However, in both of these examples, the challenge is that the website must be set up with software that enables the disabled person to navigate the site. Many, if not most, websites are not set up to handle this need. An additional challenge for ADA and website compliance is that the regulations that determine the level of ADA compliance have not yet been finalized by Congress.

The opening for ADA claims arising from website accessibility comes from several sources: job application procedures, hiring, firing, career advancement, job training, and use of online content. The question now becomes, “Is this an insurable risk, and if so, where can I find insurance coverage?”

Initially, since it relates to access, you might think this is covered by their General Liability policy. This is incorrect, as the personal/advertising liability does not extend to online access.

Since the claim appears to derive from the media you have put online, you might understandably think that the Media or Website Liability policy would be the answer. However, the Media Policy may deny coverage for this type of claim. This denial will most likely be based on the fact that the medium itself is not the issue; rather, it is the functionality or performance of the website. Media policies are generally designed to cover allegations of libel, slander, defamation, and copyright infringement.

Someone may look at a Professional Liability policy since this could be construed as a failure to provide a service. That could be a challenge because the service is being provided, but not everyone can see it. The claim may only address access and not the failure of a service, so that is not the ideal fix. Also, there may not be a professional service being provided to the point where you can buy an E&O policy.

Another option could be Cyber Liability coverage. Some carriers have accepted ADA website claims on the basis that the claim can trigger their Privacy and Security Wrongful Act definition of “violations of laws that govern accessibility.” In some ways, this is similar to how some cyber markets will pick up Social Engineering, seeking to differentiate their products in a crowded marketplace. However, due to the lack of a breach or loss of PII/PHI, it may be a stretch for Cyber coverage to respond.

One insurance policy that can potentially provide some defense coverage would be Employment Practices Liability. If you have Third-party Coverage, including Third-party Discrimination Coverage, it might be able to trigger the EPL policy. If you are providing something to the population at large, with the exception of the disabled, that could be alleged to be discriminatory towards the disabled. The EPL policies do not cover the expenses to modify the property to make it ADA compliant, but they do cover defense costs. A similar approach would be expected if an EPL policy were to respond to these claims.

Even under the best of circumstances, you need to consider the cost of upgrading your website to be ADA compliant. Fixing the problem is always preferred over waiting for a claim to hit.

Website compliance under the ADA will continue to evolve, especially considering the fact that official regulations have not come out yet. This issue only underscores the need for constant vigilance and understanding of a complex issue in the marketplace.

[framed_box]This article by Charles Sharp, was originally published by AmWINS Group, Inc.
Legal Disclaimer: Views expressed here do not constitute legal advice. The information contained herein is for general guidance of matter only and not for the purpose of providing legal advice. Discussion of insurance policy language is descriptive only. Every policy has different policy language. Coverage afforded under any insurance policy issued is subject to individual policy terms and conditions. Please refer to your policy for the actual language.[/framed_box]

Museums and Cultural Institutions: Unique exposures

paperless — Wed, 18 Jun 2014 23:08:05 +0000

Your priceless collections and exhibits are what pull visitors through your doors. But keeping those visitors safe – as well as your employees, volunteers, building and reputation – is what keeps those doors open. Travelers has years of experience working with museums and cultural institutions. We understand your industry. We can help you with your insurance needs – from protecting your fine art collections, to covering your property risks to providing general liability coverage to workers compensation.

Fine art expertise

We offer Museums and Cultural Institutions customized product and service offerings. Our Inland Marine division is a Fine Art market leader that provides flexible solutions for your unique needs:

Local underwriting presence with fine art expertise
Broad, worldwide coverage at current market value
Coverage for exhibitions, loans and items while in transit
High capacity for high-value collections
On-site risk control consultations to help enhance facility and collection management
Dedicated fine art claim team committed to proper claim handling for unique valuable objects
Access to our Special Investigations Group who focuses on theft prevention and recovery of stolen property

One company for property exposures

You can cover your buildings, personal property, and lost income with our Travelers Deluxe® product. In addition to general risks, Travelers Deluxe can address special exposures museum directors
face that can affect operations; such as:

Lost income coverage
Coverage to pay additional costs to use green materials to repair or replace damaged buildings and to become LEED-certified
Robust data and media coverage in the event of a covered loss
Protection for property you transport, no matter the mode
Coverage to pay for loss of leasehold interest should a landlord cancel a lease due to direct physical loss or damage by a covered cause of loss to property at a leased location

General liability coverages

Museums and cultural institutions are responsible for ensuring that their buildings and grounds are safe and hazard free. They can be held responsible for injuries to patrons that occur on
their premises. Travelers can help customers manage their liability exposure with general liability protection that can include important additional coverages:

Owners with Managers and Lessors of Premises
Extension of Coverage – Amended Bodily Injury Definition
Bodily Injury to Co-Employees and Co-Volunteer Workers
Events and Liquor Liability Coverage

Workers compensation coverages

Museums and cultural institutions have a wide variety of professional and non-professional positions from curators to security to event coordinators. Each position has its own unique exposures. Travelers’ experience in risk management can help museums effectively manage these diverse exposures and, ultimately, the costs of an accident.

Travelers Medical AdvantageSM – Integrated medical management solutions– Corridor of CareSM Post-Injury Management
– Extensive Preferred Provider Networks with a presence inall 50 states
– Pharmacy Network
– Focus on Early Intervention
– Return-to-Work Programs
– TravComp® – our specialized workers compensation claim handling model

Management liability and crime coverages

Whether you are a nonprofit museum or cultural institution or a privately owned organization, Travelers can protect your organization and its directors and officers through our customized management liability coverages. Our Bond & Financial Products division offers Directors & Officers Liability coverage protecting an organization against the cost of defense, settlements and judgments associated with litigation pursuing the organization and acts of its board of directors and officers. Protection extends to the personal assets of directors and officers as well. The full range of innovative specialty solutions from Travelers Bond & Financial

Products also includes:

Employment Practices liability coverage
Fiduciary liability coverage
Crime and Kidnap & Ransom coverages
CyberRisk coverage

Guidance on liability issues

With Travelers, you’ll have access to specialized risk control and claim professionals who know the intricacies of your industry and can provide guidance and support. Their aim? To minimize disruptions and reduce loss costs. Travelers risk control representatives will take the time to meet with you and conduct risk control assessments to find risks others might miss and then help you create risk management solutions to help you be prepared for unanticipated events. They will also give you access to our online collection of risk management resources about slip, trip and fall risks to help you reduce exposures and potential loss.
Specialized claim handling from Travelers’ claim professionals includes aggressively defending claims that lack merit to ensure we pay only what our insured is legally responsible for – resulting in 62 percent of claims closed without pay – and 98.5 percent of these claims are closed in 6 months and never reopened.

As part of our ongoing dedication to the museum community, we recently sponsored the May 18-21 American Alliance of Museums (AAM) expo in Seattle. The AAM expo hosted a colorful palette of over 4,000 attendees, from museum directors and curators.

Preparing your business for potential holiday hazards

paperless — Fri, 06 Dec 2013 00:34:13 +0000

Menorahs and Christmas trees light up Main Streets across America during the holidays, but there are risks associated with these decorations. Risk management professionals and insurance agents can help business owners understand how to keep their stores festive yet hazard free during the holidays.

The holidays usually bring several things to a small business – more foot traffic, celebratory decorations and additional staff to help with boosted sales. However, with added customers and distractions, slips and trips are never far away. So when getting into the holiday spirit, you should make safety a priority.

Training employees on safety practices key to reducing injuries

New or seasonal hires often bring greater risk when it comes to frequency of injuries. In fact, they are five-times more likely to experience an injury in their first month of employment which can be significant enough to require them to miss work, leaving you short-handed at a time when you need all hands on deck*.

Therefore, training employees in workplace safety from day one is key. Helpful tips to keep in mind when safeguarding your store include:

Make sure new hires are familiar with their surroundings and responsibilities. While they may have a lot of industry experience, your unique facility is still unfamiliar territory.
Train employees in proper lifting techniques and ladder safety.
Ensure that your candles are battery operated. Decorations also go hand-in-hand with potential accidents and injuries. According to the National Fire Protection Association, the top 4 highest days of the year for candle fires happen between Christmas Day and New Year’s Eve. So in a busy retail environment, or even in the office, faux candles may be best.
Choose your decorations wisely. Many of them are combustible, or will burn. Things like paper, decorated trees and wreaths will increase the fire load in a small business. Keep them away from heat or other ignition sources.
Use extension cords properly, and be sure you aren’t ”daisy-chaining” them in order to extend a decoration or a theme to an area where the plug cannot reach. Aside from a potential trip and fall incident, this is also a fire hazard.
Choose smart locations for any additional holiday displays and products. Be sure you are not covering up emergency exit signs, over-crowding aisle ways—anything that would make it difficult to get out in an emergency situation.
Be sure decorations are secured properly and traffic can navigate easily around them, especially when it comes to big displays.
Maintain appropriate inventory levels. Over-stocking shelves could lead to items toppling onto staff or customers.
As a general rule, always take the time to scan your facility to make sure it’s safe for customers and employees. It should be a part of your daily process to open and/or close up shop.

International Advantage Natural Disaster Enhancement

paperless — Tue, 29 Oct 2013 17:49:28 +0000

When working in the real world, businesses can face real world problems.
A U.S.-based church group was stranded in a Haiti crisis zone. Our service provider sent a security detail to escort the group to the Dominican Republic, where they were repatriated safely to the U.S. within 24 hours of the call.

How can we help?
Our international package policy can provide executive assistance services with an optional Natural Disaster Relocation and Repatriation coverage enhancement to assist your employees in their time of need.

Other coverage enhancements, not typically provided by other foreign package markets, include:

Transportation costs incurred for relocation and repatriation to the employee’s resident country or to the nearest place of safety after the covered natural disaster strikes.
Reasonable accommodation costs incurred while relocated and repatriated, subject to time and dollar limits.

Do you or your employees travel overseas? If yes, contact us to learn more about business travel insurance.

Highlights and Advantages

Limits up to $2,500 per employee and $10,000 per policy
Pricing starting at $250
Highly skilled and international business trip travel focused underwriters
Superior customer service
Financial Strength: A+ by A.M. Best & Rated AA- by Standard & Poor’s

Coverage options for your barber and beauty business

paperless — Fri, 06 Sep 2013 21:37:52 +0000

Coverage for barber and beauticians professional liability is automatically included for your “employees” under the commercial general liability coverage form. We have the ability to provide professional liability coverage for barbers and beauticians that are independent contractors – this optional coverage is available for $25 per independent operator under the Additional Insured-Independent Operators form -CG T567 (11-03).

The form does require each operator be scheduled. For additional information, contact us via email or call 877-239-0067

Safety tips for beauty salons and barber shops

By assessing your business procedures and ensuring that your employees are adequately trained, you can create a safer workplace, reduce the risk of losses and help protect your business and your employees.

Employees

Do you:

Do you have Material Safety Data Sheets for products to which employees will be exposed? Have you verified the personal protection to be used with each product?
Enforce the use of protective gloves when working with preparations that could cause or aggravate skin irritations?
Have adequate ventilation to remove mists or sprays that may be harmful?

Customers

Do you:

Regularly inspect chair conditions, booster seat anchor bolts and safety straps?
Provide smocks and towels – for all services – to protect clothing and skin?
Routinely inspect grounding and wiring of electrical appliances?
Have dryers guarded with an automatic cut-off switch to prevent overheating?
Maintain availability of emergency exits – clear, adequately lit, highly visible?

Shop location

Do you:

Routinely inspect parking and entranceways to verify smooth and adequately lit walking surfaces?
Clearly mark traffic patterns?
Store soiled towels, hair clippings and trash in closed metal containers?
Have – and use – double cylinder deadlocks on all exterior doors?
Have adequate electrical systems? Circuit breakers, no use of temporary extension cords in lieu of permanent wiring, fused power strips for multiple electrical connections
Have UL rated 2A:10BC fire extinguishers placed in every 3,000 sq. ft. of space? Are employees trained in their use?

Services provided

Do you:

Use only brand name, quality products? Do you have purchase records to document the use of such material?
Follow use and warning instructions provided by product manufacturers?
Verify proper application instructions and product warnings for house labeled products? Has legal counsel reviewed them?
Question customers about sensitivity to possible preparations to be used?
Maintain sufficient records to provide customers with the formulas of chemicals used in their services? Could this be provided to a physician for treatment of any rashes or other negative health effects?
Organize your supply areas with clear labeling to avoid possibility of using the wrong product or formula?
Verify the licensing and certifications of staff performing electrolysis or hair replacement services involving penetration of the skin?

Private Choice Ovation – Comprehensive Insurance Protection

paperless — Tue, 11 Jun 2013 20:45:10 +0000

Today’s complex economic, regulatory and legal climate leaves little margin for error in running a business. Do you have the necessary comprehensive insurance protection needed to defend against all of the exposures you can face running a business in this environment?

Paperless Insurance Services in partnership with A+ rated Hartford Insurance Company is excited to introduce Private Choice OvationSM (Ovation), a new and enhanced management liability coverage offering from The Hartford. Designed to help protect businesses from unforeseen loss, Ovation offers an exclusive suite of products with customizable coverage parts and limits to meet your client’s specific business needs. These coverages can help protect businesses on all fronts all while giving executives peace of mind so they can focus on their business.

Get a Quote in Minutes!

Call now 877-239-0067 to get Comprehesive, Customizeable Coverage all with the Ease of Doing Business.

Consider these facts:

On April 5, 2012, President Barack Obama signed the Jumpstart Our Business Startups (JOBS) Act, legislation that will impact how businesses raise capital and how they are regulated.
The Equal Employment Opportunity Commission (EEOC) received 99,412 charges of employment discrimination in 2012, the third straight year with nearly 100,000 charges filed – and it recovered a record $365,400,000 in monetary recovery through its administrative process.
Between 2006 and 2012, corporate bankruptcy filings were up 98% in the United States.

Designed with these facts in mind, Ovation offers the most sought-after coverage features*, including:

Automatic coverage for newly acquired/created subsidiaries or mergers with no mid-term changes to premium or coverage terms.
Enhanced ease of doing business with flexible claims reporting provisions.
Coverage related to Crowd Funding under the 2012 Jumpstart our Business Startups Act (the “JOBS Act”).
Reimbursement for certain costs associated with a data privacy breach.
Sublimit for defense costs regarding Wage and Hour claims (may be available by endorsement and only in certain jurisdictions).

Targeted Industries

Professional Services Firms
Business support services
Repair services
Agriculture
Specialty trade contractors
Technology
Retail
Food services
Real Estate
Manufacturing

* The description herein is summary only. It does not include all terms, conditions, and exclusions of the policy described. Please refer to the actual policies for complete details of coverage and exclusions. In the event of a conflict, only the terms of an actual issued policy will prevail. Coverage is provided by the member companies of The Hartford Financial Services Group, Inc. and may not be available in all states. Hartford Financial Products is an underwriting unit of The Hartford. All information and representations herein are as of June 2013.