Global insurance and reinsurance company XL Group's Bermuda Professional Lines Unit has introduced a new Wage & Hour Liability insurance product to help new and existing clients to better manage their risks from employee compensation and classification disputes.
Claims related to Wage & Hour law such as unpaid overtime, employee misclassification and failure to pay minimum wage could prove expensive to employers if they result in collective and class actions.
XL Group Bermuda Professional Lines Unit chief underwriting officer Matthew Irvine said that with increasing enforcement of the Fair Labor Standards Act, companies involved in alleged violations of Wage & Hour laws face potential reputational and operational risks.
"Companies involved in such disputes, whether the disputes are legitimate or not, are often required to invest an increasing amount of time and resources in what are notoriously expensive cases to defend," Irvine added.
Intended to meet the requirements of large employers, the new stand-alone insurance product provides coverage for Wage & Hour defense and indemnity liability.
The new product features comprehensive coverage for Wage & Hour law violations, risks of large employers with more than 10,000 employees.
Coverage also includes earned wages, private litigation and governmental civil actions, liquidated, statutory and punitive damages as well as attorneys’ fees.
XL Group plc’s insurance companies offer property, casualty, professional and specialty insurance products globally to industrial, commercial and professional firms, insurance companies and other enterprises.