Commercial Lines

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.

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 use of social-media sites—Facebook, YouTube, Twitter—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.

While proposed statutes may fuel an increase in lawsuits against employers who allow bullies to work for them, right now it’s not illegal to be a jerk at work, according to employment practices liability experts.

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.

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.

Employers and their insurers will have a new tool, grounded in the science of human behavior, available to assess an organization’s vulnerability to employment practices liability lawsuits when Montage Analytics officially rolls out its EPL Risk Index later this year.