I got a new computer today. My CCAP issued Dell was up for replacement, so now I have a new Dell with Windows 7, a different keyboard (with a numeric pad) and a built in webcam. Everything that was on my old computer is on this one, documents and photos and email, albeit in some different locations.

The new laptop is much quicker, and I have had little trouble adjusting to it. I have to set up Word, Excel, Power Point and Outlook to the formatting I prefer, but that didn't take too long. It feels like the same thing, only newer and better and with a few tools I did not have before.

We try to provide the same experience with our member service programs. As the programs age we try to improve and make changes for the better. PComp may only provide workers' compensation insurance, but it also has new services such as our RMAP program to help members lower their high experience modifications. PCoRP has a new Loss Prevention Grant Program. PIMCC has a new service to help counties save money through the Act 22 changes. These are just a few examples.

It also helps that generally our programs have a strong financial position. This allows the governing boards more options for member services.

Now if I could only get the dictionary up to date on this new computer!

Make sure you contact us when you need help with something,

                              John Sallade 

By Linda Rosito, Insurance Training Director
 

Cases against employers are on the rise. It is estimated that three out of five employers will be sued by an employee. Employers are finding that they are vulnerable from the pre-hiring process through the exit interview, even if the employee was never hired, or only employed for a matter of days. Every employer faces the reality that it could be the target of legal action from past, present and prospective employees. Even if the claim is groundless or fraudulent, the defense of a suit can be expensive in time, resources and finances. 

EPLI policies generally offer coverage for the following types of claims:

• Gender, age and other types of discrimination
• Sexual harassment
• Wrongful termination or discipline
• Negligent compensation, promotion or hiring decisions
• Breach of contract for employment
• Emotional distress or mental anguish
• Invasion of privacy
• Libel or slander
• Employee benefits mismanagement

Historically, employment practices coverage has been included in educators' professional liability, not-for-profit directors' liability or public officials' liability. The EPLI coverage provided by the PCoRP program is included under the public officials' liability coverage section. Stand alone EPLI policy purchases by public entities are less common because it has been more cost efficient to incorporate EPLI coverage into existing lines of coverage.

The most significant factor in determining the exposure and pricing of EPLI coverage is the number of employees working for the entity. The higher the employee count, the larger the pool of potential plaintiffs. Pricing is also highly dependent upon employee count. Other factors that are considered in the pricing of the coverage include the amount of the retention/deductible, unionization and alternative employee remedies. Collective bargaining agreements may reduce an employer's exposure. Because most EPLI policies have exclusions that pertain to collective bargaining agreements, the existence of such agreements may also favorably affect the premium for the coverage.

While virtually all EPLI policies are claims-made, some are "claims-made and reported", with others being "claims-made and discovered". It is important to ascertain what the reporting requirements are for your EPLI coverage. Coverage can be denied if an otherwise covered claim is not reported as required under the policy. It is crucial to restate that notice provisions can govern whether coverage will apply to a claim. Procedures should be in place to assure that claims information is compiled and reported in a timely manner. It cannot be stressed enough that your producer cannot be a substitute for such procedures. Producers can transmit notices of claims, but only the employer can assure that policies and procedures are in place and enforced. As previously noted, many otherwise covered EPLI claims are declined for failure to comply with policy reporting provisions. 

Questions or comments? Contact Karen Cohen, CCAP's Property and Casualty Programs Manager