EMPLOYMENT PRACTICES LIABILITY COVERAGE ENDORSEMENT EXTENSION OF COVERAGE FOR DEFENSE ONLY OF WAGE AND HOUR CLAIMS (BROAD) - E1808BO-0910

Transcription

1 EMPLOYMENT PRACTICES LIABILITY COVERAGE ENDORSEMENT EXTENSION OF COVERAGE FOR DEFENSE ONLY OF WAGE AND HOUR CLAIMS (BROAD) - E1808BO-0910 In consideration of the premium charged, it is hereby understood and agreed as follows: 1. The following Insuring Clause is added to Section A. INSURING CLAUSE: A.1. Notwithstanding Section C., EXCLUSIONS, b), Underwriters shall pay the Costs, Charges and Expenses to defend any Wage and Hour Claim first made against an Insured during the Policy Period, subject to the Wage and Hour Claim Sub-Limit. 2. Section B., DEFINITIONS, 2. Claim is amended to add: c) any Wage and Hour Claim, subject to the Wage and Hour Claim Sub-Limit. 3. Section B., DEFINITIONS is amended by the addition of the following definitions: Wage and Hour Claim means: 1) any written demand for monetary damages or other nonmonetary relief made by or on behalf of an Employee against any of the Insureds alleging solely a Wage and Hour Wrongful Act(s); or 2) any judicial, administrative or arbitration proceeding initiated by or on behalf of an Employee against any of the Insureds, in which the Insured may be subjected to a binding adjudication of liability for damages or other relief, alleging solely a Wage and Hour Wrongful Act(s). Wage and Hour Wrongful Act means any actual or alleged violation of any federal, state or local wage and hour law or regulations governing the payment of wages, including any allegations predicated thereon, or derived therefrom, whether or not such allegations are made in connection with any governmental or administrative proceeding. Interrelated Wage and Hour Wrongful Acts means more than one Wage and Hour Wrongful Act which have as a common nexus any fact, circumstance, situation, event, transaction or series of facts, circumstances, situations, events or transactions. 4. Section B., DEFINITIONS, 23. Third Party Wrongful Act is amended by the addition of the following: Third Party Wrongful Act shall not include any Wage and Hour Wrongful Act. 5. Section B., DEFINITIONS, 24. Wrongful Employment Act is amended by the addition of the following: Wrongful Employment Act shall not include any Wage and Hour Wrongful Act. 6. Section C., EXCLUSIONS, subsections a), e), f), h) and i) are deleted in their entirety and replaced with the following: E1808BO-0910 Page 1 of 5

2 a) based upon, arising out of, directly or indirectly resulting from, in consequence of, or in any way involving: (i) Wage and Hour Wrongful Act(s) or any fact, circumstance, situation, transaction or event which has been the subject of any notice given prior to the Policy Period under any other similar insurance policy, or any other Wrongful Employment Act(s), Third Party Wrongful Act(s) or Wage and Hour Wrongful Act(s) whenever occurring, which, together with a Wrongful Employment Act(s), Third Party Wrongful Act(s) or Wage and Hour Wrongful Act(s) which has been the subject of such prior notice, would constitute Interrelated Wrongful Employment Acts, Interrelated Third Party Wrongful Acts or Interrelated Wage and Hour Wrongful Acts; e) against any Subsidiary or any of the Insured Persons of a Subsidiary based upon, arising out of, directly or indirectly resulting from, in consequence of, or in any way involving: (i) Wage and Hour Wrongful Act(s) occurring prior to the date such entity became a Subsidiary or subsequent to the date such entity ceased to be a Subsidiary, or Wage and Hour Wrongful Act(s) occurring while such entity was a Subsidiary which, together with a Wrongful Employment Act(s), Third Party Wrongful Act(s) or Wage and Hour Wrongful Act(s) occurring prior to the date such entity became a Subsidiary, would constitute Interrelated Wrongful Employment Acts, Interrelated Third Party Wrongful Acts or Interrelated Wage and Hour Wrongful Acts; f) based upon, arising out of, directly or indirectly resulting from, in consequence of, or in any way involving, Wage and Hour Wrongful Act(s) actually or allegedly committed subsequent to a Takeover; h) based upon, arising out of, directly or indirectly resulting from, in consequence of, or in any way involving Wage and Hour Wrongful Act(s) which any of the directors, officers, managers or supervisory Employees had knowledge of prior to the inception date of this Policy or prior to the inception date of any prior Policy of which this Policy is a renewal thereof, and which Wrongful Act(s) could reasonably be expected to give rise to a Claim. i) based upon, arising out of, directly or indirectly resulting from, in consequence of, or in any way involving: E1808BO-0910 Page 2 of 5

3 (i) Wage and Hour Wrongful Act(s) actually or allegedly occurring prior to the Retroactive Date; or any other Wrongful Employment Act(s), Third Party Wrongful Act(s) or Wage and Hour Wrongful Act(s) actually or allegedly occurring on or subsequent to the Retroactive Date which, together with any Wrongful Employment Act(s), Third Party Wrongful Act(s) or Wage and Hour Wrongful Act(s) actually or allegedly occurring prior to such date would constitute Interrelated Wrongful Employment Acts, Interrelated Third Party Wrongful Acts or Interrelated Wage and Hour Wrongful Acts. 7. Solely with respect to Wage and Hour Claims, Section C., EXCLUSIONS, subsection b) is amended to add the following: This exclusion is subject to the provisions of Insuring Clause A Section D., LIMITS OF LIABILITY AND RETENTIONS, is amended to add the following clauses: Underwriters maximum Limit of Liability for Wage and Hour Claims shall be $ each Claim and $ in the aggregate and shall apply only to Costs, Charges and Expenses ( the Wage and Hour Claim Sub-Limit ). In no event shall the Wage and Hour Claim Sub-Limit apply to any Loss other than Costs, Charges and Expenses incurred in connection with Wage and Hour Claims. The Wage and Hour Claim Sub-Limit shall be part of, and not in addition to, the Limits of Liability stated in Item C. of the Declarations. Underwriters will have no obligation to pay Costs, Charges and Expenses within the Retention or to defend or continue to defend any Wage and Hour Claim after the Wage and Hour Claim Sub-Limit has been exhausted by payment of Costs, Charges and Expenses. Two or more Wage and Hour Claims alleging Interrelated Wage and Hour Wrongful Acts shall be treated as a single Wage and Hour Claim, subject to the Wage and Hour Claim Sub- Limit, and such Wage and Hour Claim will be deemed first made when the earliest Wage and Hour Claim is first made. In no event shall a Wage and Hour Claim and any other Claim be considered interrelated. 9. Section J., OPTIONAL EXTENSION PERIOD, subsection 1. is deleted in its entirety and replaced with the following: 1. If this Policy is cancelled or non-renewed by the Named Insured or if Underwriters refuse to renew this Policy for reasons other than non-payment of premium or noncompliance with the terms and conditions of this Policy, then the Named Insured shall have the right, upon payment of an additional premium, to an extension of the coverage granted by this Policy with respect to any Claim first made during the period of time elected after the effective date of such cancellation or, in the event of such refusal to renew, after the Policy s expiration date, but only with respect to any Wrongful Employment Act(s), Third Party Wrongful Act(s) or Wage and Hour Wrongful Act(s) committed before such date. E1808BO-0910 Page 3 of 5

4 Options: 12 months for 125% of the premium for the Policy Period, or 24 months for 180% of the premium for the Policy Period, or 36 months for 200% of the premium for the Policy Period. 10. Section K., COVERAGE FOR SUBSIDIARIES CREATED, ACQUIRED OR SOLD, is deleted in its entirety and replaced with the following: 1. If, after the inception of the Policy Period, an Insured Organization creates or acquires a Subsidiary, the Subsidiary shall be an Insured Organization, but only with respect to any Wrongful Act(s) committed, attempted or allegedly committed or attempted, after the creation or acquisition of the Subsidiary. Written notice of such event shall be given to Underwriters within forty-five (45) days of the event together with such information as Underwriters may require. In the event that the number of Employees of the new Subsidiary exceeds 15% of the total Employees of the Insured Organization prior to the creation or acquisition, as reflected in the most recent Application for this insurance there may be an additional premium charged, which must be paid in order for coverage for the new Subsidiary to continue beyond the initial forty-five (45) day period. 2. If, after the inception of the Policy Period, an Insured sells a Subsidiary, that Subsidiary shall be an Insured Organization, but only with respect to Wrongful Employment Act(s), Third Party Wrongful Act(s) or Wage and Hour Wrongful Act(s) committed, attempted or allegedly committed or attempted, before the date of such sale. Written notice of such sale shall be given to Underwriters within forty-five (45) days of the sale. There will be no return premium. 11. Section L., RUN-OFF COVERAGE is deleted in its entirety and replaced with the following: 1. In the event of Takeover of the Named Insured, this Policy will continue until its natural expiration date as set forth in Item B. of the Declarations but only with respect to any Wrongful Act(s) committed or allegedly committed before the date of the Takeover. After such event, the Policy may not be canceled, regardless of Condition G.1. and the entire premium for the Policy will be deemed fully earned. 2. In the event of Takeover of the Named Insured, Clause J. Optional Extension Period, is not available. 3. In the event of a Takeover of the Named Insured: a) The Named Insured shall have the right and option, upon payment of an additional premium, less any pro rata unearned premium, to an extension of the coverage granted by this Policy with respect to any Claim first made during the period of time elected after the effective date of the Takeover, but only with respect to any Wrongful Act(s) committed or allegedly committed before such date. Options: E1808BO-0910 Page 4 of 5

5 12 months for 125% of the premium for the Policy Period, or 36 months for 200% of the premium for the Policy Period, or 72 months for 300% of the premium for the Policy Period. b) The right to purchase this extension of coverage shall terminate unless written notice of the request to purchase the extension of coverage, together with full payment of the premium for the extension of coverage, as set forth in a) above, is received by Underwriters within thirty (30) days after the expiration date of the Policy as shown on Item B. of the Declarations. If such notice and premium payment are not given to Underwriters, there shall be no right to purchase this extension of coverage. c) If this extension of coverage is elected and purchased, then: i) Clause G.1. above, is deleted in its entirety, and ii) iii) Clause J. above, is deleted in its entirety, and the maximum aggregate Limits of Liability of Underwriters under this Policy for this extension of coverage shall be the amount shown in Item C. of the Declarations 12. Section E., NOTIFICATION, subsection 2., shall not apply to Wage and Hour Wrongful Act(s). This Policy shall not respond to potential Wage and Hour Claims, but only to actual Wage and Hour Claims. 13. Nothing in this endorsement or elsewhere in the Policy may be interpreted as affording coverage for any Loss other than Costs, Charges and Expenses to defend a Wage and Hour Claim. ALL OTHER TERMS AND CONDITIONS OF THE POLICY REMAIN UNCHANGED. This endorsement is to take effect on «f4». Policy No.: Name: «f1» «f2» «f3» Policy Effective Date: «f4» Expiration: «f5» Endorsement No.: E1808BO-0910 Page 5 of 5