Zurich Employment Practices Liability Insurance. Responding to the issues employers face today

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1 Zurich Employment Practices Liability Insurance Responding to the issues employers face today

2 No matter how well prepared an organization may believe itself to be, in today s environment the potential for litigation from employees continues to increase as do settlements and verdicts. Whether a lawsuit arises from claims of wrongful termination, failure to promote, negligent evaluation, discrimination, sexual harassment, or a host of other reasons, an employment practices claim can prove costly not only in its financial impact, but also in the cost to a company s reputation, from media and public scrutiny. Regardless of industry or type of business, the threat of litigation is real, its potential sources are many, and the consequences can be enormous. In this volatile environment, where employees increasingly seek legal remedy for their grievances, it is more important than ever to secure sound, broad coverage for employment practices liability exposures. Zurich is a leader in Employment Practices Liability (EPL) insurance, delivering the coverage companies need to respond to today s issues. Responding to emerging risks Zurich s newly enhanced EPL coverage offers protection that may result in substantial savings for our customers, with new features such as: 100 percent defense cost allocation Defense cost coverage for breach of contract claims Defense cost coverage for stock option related claims Spousal / domestic partner extension Third party coverage grant Enhanced auto acquisition threshold (20 percent or 2,500) No arbitration provision Zurich s policy terms and conditions have been designed to be among the broadest in the industry: Claims made form with duty to defend Broad definition of wrongful employment act, including: Violations of any law or public policy concerning discrimination, harassment, retaliation and genetic predisposition Breach of employment contract Wrongful termination; negligent hiring, supervision and retention Employment-related misrepresentation, defamation, invasion of privacy, and all other employment-related torts or common law violations Broad definition of employee that includes: Temporary and seasonal employees Volunteers Leased employees Independent contractors Punitive damages: most favorable jurisdiction wording Insured s option to settle within retention Full prior acts protection Modified "hammer" clause Bilateral discovery Severability as respects to application Global coverage Customers with 250 or more employees find Zurich s risk management tools especially helpful, adding to the resources their human resource, risk management and administrative staff can leverage.

3 Zurich also offers flexibility, enabling our customers to select coverage options to address their particular coverage concerns: Claims reported / indemnity coverage Claims made / indemnity coverage Bordereau reporting Insured choice of defense counsel Outside position coverage Sensitivity training coverage Joint venture coverage For optimal flexibility, we can also, where permitted, provide individual manuscript endorsements. Zurich is committed to meeting our customers needs as fully as possible and will package our EPL protection with other Zurich coverages such as Accidental Death & Dismemberment (AD&D) insurance, Directors & Officers Liability insurance and other coverages our customers seek. Zurich s commitment to service Zurich is committed to helping our customers manage their employment practices related risks, delivering the risk management tools and services that can help reduce the likelihood of a claim. Depending on the size of their organization, customers may receive the following: Loss prevention services credit Employment issues training session with a panel firm to address critical areas Online reference tools through HRCare, including ten complimentary online training sessions through HRClassroom and special discount pricing Membership in the Society for Human Resource Management (SHRM) Employment issues telephone hotline service Employment practices events coverage If a claim does occur, our customers know their claim will be handled by experienced claims counsel, specifically designated to work with them to help minimize the damage and disruption to their business and reputation. Zurich s EPL insurance covers organizations with more than 11 million employees globally in the corporate segment; our average customer has more than 30,000 employees. 2

4 A portfolio of management solutions Directors & Officers Liability insurance is an essential component of a wellconstructed insurance portfolio as the impact of shareholder, class action and other litigation grows. Zurich offers custom solutions for Directors & Officers Liability exposures for public, private and not-for-profit organizations. Fiduciary Liability insurance helps protect those with fiduciary responsibilities when the poor performance of a plan or a downturn in the stock market becomes the foundation of litigation by employees and retirees. Crime insurance helps protect an organization from a wide range of threats from employees or nonemployees, including forgery or alteration, employee dishonesty/theft, robbery and safe burglary, among many others. The stability to be there today and in the future Zurich has stood the test of time. Founded more than 135 years ago, the member companies of Zurich Financial Services Group have served customers with consistency and reliability across dramatically changing market conditions. We have weathered good times and bad, building a global presence that now delivers one of the industry's broadest portfolios of products and services. Our dedication to customer security is embodied in our commitment to the maintenance of a strong balance sheet no matter what the economic conditions of the moment may be. We have been in business since Currently, we are the third largest property/casualty insurer in the world, doing business in more than 170 countries. We write property/casualty business for 70 percent of the Global Fortune 100 companies. We had a Group business operating profit of USD 5.2 billion in 2008 with 24 consecutive quarters of Group profitability at that point. 3

5 Zurich s disciplined approach creates value for our customers. Insurance is our business, and managing risk is what we do best. We underwrite carefully and manage our operations efficiently. We follow a conservative investment philosophy that has served us well in the past and which is serving us well in today's turbulent financial environment. We take a long view, valuing our stability, solvency and the assurance that we will be here for our customers tomorrow and for many years to come. Our exposure to U.S. sub-prime is very small We exited the credit default swap market in We were one of only a handful of global insurance carriers to generate a return on our investment portfolio in Our financial ratings remain strong. Zurich looks to the future. We believe that maintaining customer relevance means delivering risk insights and innovative products and services that anticipate and answer changing needs. We are totally committed to delivering what matters today and tomorrow. We continue to transform our organization to become easier to do business with and to define the Zurich customer experience. We have the strength and confidence to look ahead to new growth opportunities, tempered by the understanding that we earn market leadership one customer at a time. Our strong capital base positions us well for new growth opportunities. We've put our employees closer to the customer by increasing the number of customer-facing employees in our North American organization. To learn more, speak to your Zurich regional contact or call us directly at Meaningful protection Zurich offers meaningful limits, and will consider all industries. Limits of liability up to $25 million for primary or excess coverage Coverage available on an admitted basis Local policies issued to foreign countries 4

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7 A A (04/09) Zurich One Liberty Plaza, New York, New York Insurance is underwritten by Zurich Insurance Company and other insurance company subsidiaries within the Zurich Financial Services Group including, in the US, Zurich American Insurance Company and its underwriting subsidiaries. Insurance product obligations are the sole responsibility of each issuing insurance company. For example, only the assets of Zurich American Insurance Company (and no other assets of the Zurich Financial Services Group) are available to meet its obligations for the performance of its products. Ratings are for Zurich Insurance Company and its rated subsidiaries. All other information is consolidated Zurich Financial Services Group financial information as of December 31, 2008, and is not audited. For more complete financial information, audited annual statements of the Group and information on the ratings for the underwriting companies of Zurich in North America, access No assurances can be given, and we make no representations, that such information has, or has not, changed since December 31, These are the most recent ratings of Zurich Insurance Company published by the respective rating agencies on their websites (as of the date of this Statement). Access the rating agencies' websites for information regarding ratings and the latest ratings available This is intended as a general description of certain types of insurance and services available to qualified customers through the companies of Zurich in North America. Your policy is the contract that specifically and fully describes your coverage. The description of the policy provisions gives a broad overview of coverages and does not revise or amend the policy. Insurance coverages underwritten by member companies of Zurich in North America, including Zurich American Insurance Company. Certain coverages not available in all states. Some coverages may be written on a nonadmitted basis through licensed surplus lines brokers Zurich American Insurance Company