Employment Practices Liability
and
Public Officials Liability Insurance
2011
Changes That May Affect You
New Program In 2011
► Background




How we got here
Choices
Decisions
Selection of Carrier
► The
Program
 Coverage
 Procedures
A Growing Problem
Employment Practices Liability
Areas Covered by Law
► Sexual
Harassment
► Hostile Work Environment
► Equal Pay for Equal Work
► Age Discrimination in Employment
► New Jersey Law Against Discrimination (LAD)
► Americans with Disabilities Act (ADA)
► Family Medical Leave Act (FMLA)
► Conscientious Employee Protection Act (CEPA,
Whistleblower)
Employment Related Claims
Cost of Claims Per Employee
$400
$354
$300
$247
$200
$100
$74
$161
$132
$126
$128
$128
$113
$112
$26
$0
00
0
2
01
0
2
02
0
2
03
0
2
04
0
2
05
0
2
06
0
2
07
0
2
08
0
2
09
0
2
10
0
2
We Had To Do Something
Choices:
• Modify Coverage
• Increase Funding (Raise Rates)
• Experience Rate (Member/JIF)
• Raise Deductibles and Co-Pays
• Address Frequent Flyers
• Educate! Educate! Educate!
Shop for a better deal?
What’s the Difference?
MEL JIF
► Our
Coverage Form
► Our Adjusters
► Our deductibles and
co-pays
► Our defense attorneys
► Flexibility
INSURANCE
► Their
Coverage Form
► Their Adjusters
► Their deductibles and
co-pays
► Their defense attorneys
►
?
At What Cost The Savings?
MEL Committee
► Examine
issues
► Explore alternatives
► Prepare RFP
► Review Results
► Interview Carriers
► Make recommendations
2011 EPL Program
Requirements From Commercial Carriers
► Match
MEL Policy Form
► Recognize our Defense Panel
► Match Current Co-Pays/Deductibles
► Match Current Rating Structure
2011 EPL Program
►
►
►
►
Match MEL Policy Form
Recognize our Defense Panel
Match Current Co-Pays/Deductibles
Match Rating Structure
► Elimination
of JIF Surcharge
► Savings of 20% vs 2011 MEL Renewal
No Longer a MEL Program!
Program Components
►Now
A JIF Program*
►XL Insurance – “A” XV Rated
►Summit Risk Services – XL Claims
 Stagliano, DeWeese & Fuscellaro, P.A.,
 Kearns, Vassallo, Kearns
►Scibal
Associates – Claims Advocate
►Helpline
* MEL will continue to provide Risk Management Services
Defense Attorneys*
ACM/TRICO
BURLCO
A. Michael Barker
William Kearns, Jr.
James Birchmeier and
Donald Powell
Joseph Betley
Allan Richardson
John Gillespie
Michael Madden
George Botcheos
* With concurrence of XL/Summit
Claims Procedures
► All
claims to Scibal as per current procedure
 Copy to DeWeese or Kearns
► Scibal
will review coverage
 Scibal forwards to Summit/XL
► Summit




will review
Assign adjuster/claim number
Acknowledgement letter to Clerk
Send ROR letter
Assign counsel with input from DeWeese/Kearns
Claims Procedures*
► “Sweep”
letter (December 17, 2010)
 Nothing falls through the cracks
► Procedures
letter (December 23, 2010)
► Report all claims within 14 Days
 “any incident, event, occurrence, loss or accident that
might give rise to a Claim.”
 Experience has demonstrated that reporting such potential
claim could result in early resolution with the occurrence
of no expenses. XL/ Summit will offer assistance with
early resolution of Claims and potential claims that are
reported to them in a timely fashion.
*All existing claims will continue to be handled by the MEL.
Early Mediation
► Early
identification of matters that could
lead to problems/litigation
► XL insurance to provide $1,000
► Parties meet with retired judge
► Effort to resolve prior to litigation
Procedures Being Developed
EPL Helpline
JIF Branded Website
January 1, 2011
answer specific HR & Employment
Law questions
► Attorneys
 Via website or telephone
 Confidential and timely responses
► On
Line resources
► Two registered users from members
 Must be employees – Not Solicitor
► Unlimited
access
HELPLINE
► Question of the Month
► Case of the Month
► HR Alerts
► Federal/State News Updates
► HR Posters
► Model Policies/Handbook
► Training Resources On Line




Managers/Supervisors
Slides, Audio, File Downloads
Small Chapters
Certificates of Completion
https://www.hrhelpline.com/njmel/
► Must
pre-register
► You will be contacted
► Given login/password
► Provided instructions
PLEASE REGISTER!
•Only two contacts per member will be approved. Municipal Solicitor is not eligible to participate.
•CONTACT #1
•CONTACT #2
•NAME:
•___________________________________________
•POSITION:
•___________________________________________
•MUNICIPALITY:
•________________________________________
•ADDRESS: (If different from Municipal Building)
•ADDRESS:
•___________________________________________
•___________________________________________
•CITY: ________________________ ZIP: _______
•EMAIL: ______________________________
•FAX: ________________________________
•TELEPHONE: _________________________
•# EMPLOYEES: ____ FT ____ PT ___ Vols
•NAME:
•___________________________________________
•POSITION:
•___________________________________________
•MUNICIPALITY:
•________________________________________
•ADDRESS: (If different from Municipal Building)
•ADDRESS:
•___________________________________________
•___________________________________________
•CITY: ________________________ ZIP: _______
•EMAIL: ______________________________
•FAX: ________________________________
•TELEPHONE: _________________________
•# EMPLOYEES: ____ FT ____ PT ___ Vols
What About EPL Hotline?
► “Helpline”
replaces “Hotline” Q&A
► “Helpline” is more comprehensive
► Hotline Program expanded to include:
 Training
 Handbook Review
 Additional uses?
TBD
What’s Next?
► Advise
all involved personnel
► Appoint Helpline contact
 Reply to E-Mail request
Two Year Program
► Rates
locked in for two years
► After two years each JIF evaluated
► JIF/Member experience will decide




► It
Rates
Deductibles
Co-Pays
Renewal
is in your hands!
Thank You
Questions