The following is a recap of the types of coverage forwage-and-hour exposures that are currently available:

o Defense-only sublimits:

At least 16 different insurance organizations offer defense-onlysublimits, according to published research reports and additionalinformation obtained by NU.

The December 2009 edition of "The Betterley Report," authored byrisk consultant Richard Betterley of Sterling, Mass., lists 13distinct insurers.

NU counted Lloyd's only once to arrive at the13-carrier total, although the Betterley Report actually lists fiveseparate program managers representing syndicates at Lloyd's(http://betterley.com/samples/EPLI09_nt.pdf).

New York-based Advisen, in an April 2010 report, provided asmaller list, but added two more names--XL and PhiladelphiaInsurance--not included on Mr. Betterley's list.

Also not included on Mr. Betterley's list is QBE Insurance, butSeth Brickman, a senior underwriter at Windsor, Conn.-basedBusiness Risk Partners, told NU he manages EPL productsfor both QBE and Lloyd's.

While the published reports do not provide details of targetmarkets for the various defense-only offerings, Mr. Brickman saidhis QBE admitted product, with a $100,000 sublimit, is foremployers with less than $200 million in assets and under 2,000employees.

Industry targets include manufacturing, services and most"run-of-the-mill" private company classes, he said. BRP cannotwrite not-for-profit, public, financial institutions (FI) or healthcare risks under the QBE program, he added.

BRP's Lloyd's product has a standard $150,000 sublimit, "but ona risk-by-risk basis," up to $1 million is potentially available,he said, adding that the Lloyd's facility handles the tougherrisks, such as municipalities and casinos.

Under the Lloyd's program, "most any asset size and employeecount can be considered, and we even have special forms forlawyers, PEOs [professional employer organizations], staffingagencies and property managers," Mr. Brickman said.

"While this facility is still not for general FI business, we dosome insurance companies, investment advisors and easier FI"risks," he added.

o Exclusion Carveback:

Providing some EPLI coverage basics, Mr. Brickman explained thatmost base policy forms have a full FLSA (Fair Labor Standards Act)exclusion.

Wage-and-hour defense-only coverage is then added byendorsement, and is generally available for both single andmultiplaintiff/class-action claims.

Some carriers have started to provide a carveback to the baseform exclusion stating that for single-plaintiff FLSA claims,defense will be provided so long as there is another coveredwrongful act to go with it.

BRP does not provide this carveback on its QBE form, but doeswith the Lloyd's product.

o Defense-and-Indemnity Sublimits:

The Betterley Report lists Markel and HCC's AVEMCO as the onlytwo carriers offering sublimited defense and settlement coverage,but NU has discovered at least two additional carriersalso offer it.

Paul Tomasi, president of E-Risk Services in Flanders, N.J.,confirmed that his firm manages Scottsdale Insurance's EPL productwith a defense and indemnity sublimit but was unavailable toprovide further details.

Christine Murray, vice president and in charge of EPL andD&O for United States Liability Insurance Group, said thecarrier offers a $100,000 sublimit for no additional premium to alltypes of employers in its target market (those with 500 employeesor less), as long as the employer is not in California or Floridaand it does not have prior claim activity.

At Glen Allen, Va.-based Markel, Managing Director Sal Pollaroconfirmed that the carrier continues to offer adefense-and-indemnity sublimit--typically $100,000, but withflexibility up to $200,000, for employers with up to 500 employees.Markel is also poised to launch a management liability policy thatwill include an EPL wage-and-hour sublimit as well, for employerswith up to 3,000 employees.

The only ineligible class will be financial institutions.

"It's not unavailable in California," he said. "It's availablesubject to underwriting" in the state perceived as a particularlytough write by carriers generally.

Darryl McCallin, EPLI program manager for Rockwood Programs inWilmington, Del., said Rockwood underwriter Meghan Bell handles newEPLI business for HCC's AVEMCO, which continues to offer a $100,000sublimit for defense and indemnity, as it has since 2005.(Houston-based HCC handle renewals for some prior business inhouse, he said.)

The Rockwood representatives said they see a lot of demand forthe wage-and-hour coverage from restaurants and contractors,listing ineligible classes as churches, educational facilities,government entities and law firms.

Rockwood does not offer the coverage in California through itsAVEMCO program, but can go to HCC Global, Philadelphia Insurance orMonitor Liability Managers for defense-only sublimits inCalifornia, Ms. Bell said.

(What's so tough about California? See "Who's At Risk For FLSASuits?" in the NU Exclusives section of www.property-casualty.com.)