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New insurance stems from rising employment liability risks
MADISON, Wis. (10/27/09)--A 30% spike in employment liability claims paid in 2008 is the catalyst for CUNA Mutual Group’s new Employment Practices Liability (EPL) coverage and risk management offering. Employment Practices Liability insurance is a key part of CUNA Mutual’s new Management and Professional Liability (MPL) policy, which covers credit unions and their staff against alleged violations of federal, state, local and common law related to past, present or prospective employment. These allegations may include discrimination, wrongful termination or workplace harassment, said John Wallace, CUNA Mutual bond and MPL product executive. “Typical compensatory awards range from $100,000 to $500,000, which is conservative because it does not include punitive damages or other awards,” Wallace added. “The recent spike in frequency and severity of employment-related lawsuits is driven primarily by higher unemployment rates.” A prevention-oriented approach combined with modern insurance coverages can help safeguard credit unions from potentially severe financial losses resulting from employment practices litigation, Wallace said. “Our new online risk management resources are prepared by employment litigation specialists and can help credit unions avoid such losses,” he added. CUNA Mutual’s Employment Practices Risk Management program features Web-based resources, including:
* Articles and news briefs; * Employment-practices training modules for credit union staff; * A reference library with papers, checklists, self-assessment tools and links to government websites; and * Model forms and policies.
These online resources will be available after Jan. 1 at no additional cost for credit unions purchasing EPL coverage with their MPL policy. “These specialized risk management tools provide protection beyond the policy for credit unions in response to a very significant and growing loss category for our industry,” Wallace said. MPL is part of CUNA Mutual’s Credit Union Protection insurance and risk management portfolio designed exclusively for credit unions to manage their financial, operational and personal risk exposures. The Credit Union Protection program includes:
* Bond; * Plastic card; * Management and professional liability; * Property and business liability; * Business auto; * Workers’ compensation; and * Plus, additional policies.
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