Commercial Lines

While there is sizable demand from insureds for coverage against the increasing tide of wage-and-hour claims made under the Fair Labor Standards Act, carriers remain largely reluctant to write policies—fearing a good chance of losing their shirts if they do.

A U.S. Appeals Court has thrown out a suit against American International Group Inc. directors and officers, stating that the plaintiffs failed to show that the AIG officials were not acting in the best interest of the company as they faced the subprime market meltdown.

As demonstrated by the case of Lilly Ledbetter, which spawned the Fair Pay Act of 2009, what appears a non-issue today might not be tomorrow. This makes the purchase of employment practices insurance vital for small and midsize businesses, according to Burns & Wilcox Manager Dick Weaver

The impact of social media on employment claims was a hot topic at the most recent International Conference of the Professional Liability Underwriting Society in San Antonio.

Another chapter has closed on the contingent-commission kickback saga with an agreement reached between a group of insurers and insurance brokers—and their clients who alleged the industry tried to manipulate the business.

The use of social-media sites has surged at a record-breaking pace over the past few years, and they are now used by employees and employers in almost every workplace—a development that has opened new vehicles for harassment, discrimination and employment-related defamation.