From the 2016 PLUS D&O Symposium session “Private/Non-Profit D&O: New Exposures/New Concerns?,” Jonathan Ziss (Goldberg Segalla), Michael Borghesi (AmWINS Brokerage Group), Maura Verrone (Berkshire Hathaway Specialty Insurance) and Eric Marler (The Hanover Insurance Group) discuss joint employees relative to August 2015 NLRB decision.
Do you agree with this statement from Eric Marler?
“If you want to play it safe just assume that everybody is an employee at this point.”
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Very topical and a nice little summary of some of the concerns and approaches. Thanks for sharing it. Insurers are quite properly concerned about the broader exposure and how best to cover it. So are franchisors, who likely will be changing their approach to EPLI coverage requirements and approved sources as a result of the NLRB stance.
As an indication of where the industry is on Joint Employer coverage (as of our December Betterley Report EPLI Market Survey – 30 leading EPLI products), we found:
* Coverage for joint employers automatically included in policy – 5
* Coverage for joint employers can be included in policy – 14
* If covered, is it subject to a sublimit? – 7 responded ‘no’, 1 sublimits to $100,000, another to $5 million, and the rest responded ”based on underwriting’
We are seeing see much tighter underwriting and anticipate more creativity to address this important broadening of exposure,
Exciting times for the franchise industry and probably for the contracting world as well.
Thanks again for the post.