Beazley forms new consortium at Lloyd’s to up capacity for wage & hour risks
Specialist insurer Beazley has launched a new consortium at Lloyd’s of London to provide increased capacity for US wage & hour risks.
Beazley’s standalone wage & hour product, the Concorde consortium will underwrite wage & hour risks on a surplus lines basis with limits available up to $25 million.
The coverage will specifically cover claims made under the Fair Labor Standards Act (FLSA), which are excluded from most employment practices liability (EPL) policies. It will include violations such as the non-payment or under-payment of wages or the misclassification of a worker’s employment status.
The new consortium will underwrite on both primary and excess basis. Beazley said the consortium can accommodate the needs of organisations with 10,000 or more employees.
The consortium is led by Beazley whose underwriters will quote and bind 100 percent of all risks. The other member of Concorde is Hiscox, with additional capacity being provided by Beazley’s special purpose syndicate 5623.
“A wide range of US organisations, whether they are operating through a traditional business model or in the new gig economy, are at risk of wage & hour law suits,” said Wayne Imrie, employment practices liability underwriter at Beazley. “It’s becoming more difficult to navigate employment legislation as the demarcation between employees and non-employees is increasingly blurred and the legislation itself is in a state of flux.”
Imrie added: “Demand for wage & hour coverage has been the fastest-growing area of EPL. Building on Beazley’s market-leading expertise in this field, we’ve responded by creating the Consortium and designing coverage that plugs the gaps that other coverages fail to offer. By offering additional capacity for the largest risks, we expect to attract more of this business into the London market.”
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