With the growing incidence
of litigation, the difficult economy, and the tightening
of the insurance marketplace, insurers are adding
more and more exclusions and limitations to their policies.
For example, a common exclusion eliminates coverage
for wage and hour disputes on overtime pay for nonexempt
employees. Some carriers are now extending this exclusion
to wage claims outside the specific “exempt/nonexempt” situation
into areas such as disputes under the Federal Equal
Pay Act of 1963, which addresses sex-based discrimination
in determining the wages of male and female employees.
Another exclusion “expansion” affects the
common prohibition against coverage for severance pay.
This exclusion might be extended to exclude coverage
for “front pay” (funds that an employee
would have received had they not been wrongfully terminated).
To learn how much and how often such additional limitations
affect your coverage, contact our professional
liability team. We make a point of staying on top of
from overall availability and pricing to the specific
changes that can alter an individual policy.