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Webinar Tips Mute your phone (*6) - *7 to unmute Don t put your phone on hold. Avoid logging into other applications Help desk 800-386-2670 For audio dial 1-877-298-8255 ID: 7225220 Web Console or Windows Console? 4
Today s Agenda I. Employment Practices Liability Insurance The Need for Employment Practices Liability GNY EPL Coverage Approach II. Identity Recovery Insurance The Need for Identity Recovery Insurance GNY IDR Coverage Approach Launch Date 5
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) 6
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. 7
The Risks Are Real 100,000+ charges filed Percentage of EPL claims against small businesses 75% of claims groundless 52% of charges are against small businesses Other 48% Leading industries = Retail, manufacturing, food service Average EEOC complaint > one year to resolve Small Co's 52% Claims Settlements 81% settle between $22,400-$40,500. 8
2005 EEOC/FEPA Statistics 35% 30% 25% 20% 15% 10% 5% 0% 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 9
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 10
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 Large Limits & deductibles High Premium Extensive underwriting Chubb, AIG, Zurich 11
Emerging Markets Combined with other coverages D & O General Liability Nominal Sublimit Meaningful sublimits GNY s EPL Coverage 12
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 13
Referral Options Limit Options: $250,000 $500,000 $1,000,000 Employees 51-250 Refer to: eplquote@hsb.com Policy premium over $100,000 Pricing Matrix Habitational: 0.6% of CPP Liability Premium Non-habitational: 1.3% of CPP Liability Premium Minimum: $50/policy 14
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 Services 15
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 16
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 17
Identity Recovery Program Why is Identity Recovery an Essential Coverage for the CPP Policyholder? 18
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 19
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 Emotional Toll 20
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 21
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 22
Identity Recovery Coverage Two Main Components 1. Identity Recovery (Assistants) and Identity Restoration (Licensed Investigators) Service 2. Expense Reimbursement Insurance What Does it Cover? Recovery Services Out-of-Pocket Expenses Lost Wages/Child & Eldercare Mental Health Counseling Legal Fees 23
Who is the Insured? Identity Recovery Insured means the following: Sole Proprietors Partners CEO Employees with 20% Ownership Directors & Officers of Condominium 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 24
What About Pricing? 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 25
Agency Support Resources Producer Meetings Educational Webinars Variety of Marketing Materials Available Q&A 26
Employment Practices Liability & Competitive Identity Recovery Comprehensive Efficient 27