Jansen & Hastings Exclusive EPLI Product
To the Construction/Professional Liability Teams,
Jansen and Hastings Intermediaries, in conjunction with the Beazley syndicate at Lloyds, announce a unique, exclusive EPLI product for the Californian Construction Industry.
“ConstructInsure”
The 1986 Immigration Reform and Control Act (IRCA) makes it unlawful to knowingly employ aliens who are unauthorized to work in the United States.
Wage and Hour Legislation opens up firms to a host of offences under this law. As an example, it is unlawful to fail to provide non-exempt employees with at least the minimum wage and overtime pay at one and one-half of the regular rate for all hours worked over 40 hours per week.
Jansen and Hastings “ConstructINsure” EPLI product provides unique enhanced coverage to defend our insureds against alleged violations in these laws
New Enforcement Climate
In April 2006 the Immigration and Customs Enforcement (ICE) announced a new enforcement strategy with an emphasis on worksite enforcement (raids), and criminal prosecutions (jail) for those who knowingly hire and traffic illegal aliens.
ICE has targeted enforcement actions for certain industries which hire a high percentage of immigrant labor, including the construction industry.
Residential construction companies reported increased incidents of receiving the formal, three day "Notice of Inspection" document for an I-9 audit, demanding the usual review of company employment records.
Wage & Hour Conformity
Investigations by the U.S. Department of Labor and the Californian Division of Labor Standards Enforcement has resulted in prosecution and fines for companies as well as considerable payments in back wages to employees. A number of firms have been found to have incorrectly paid employees over a number of years.
The California Supreme Court recently issued a decision in which they held that employers are subject to a three year statute of limitations (rather than a one year statute) for meal violations. This has already resulted in a number of wage and hour claims.
Part of the problem in California is the state has complicated wage and hour regulations that may not exactly fit within the construction industry.
- The construction industry is split into union and non-union operations.
- Non-union operations find it difficult to enforce overtime, breaks and other regulations.
- Union shops are more experienced.
- Field operations make it hard to enforce compliance.
- High-profile penalties make the industry ready for change.
Both the Wage and Hour and IRCA regulations are complicated and have exposed construction firms in California to considerable potential violation of both these individual laws. In addition to the standard employment practice protocols, a firm’s Human Resources department now has to have a superior understanding of these regulations. This increased exposure to the construction industry has led us to develop our unique product, providing defense costs for W&H and IRCA as well as broad EPLI coverage.
In addition to this increased coverage "ConstructInsure” provides specialist risk management services, at the underwriter's expense, to help the insured’s HR department deal with these challenging exposures.
Risk management services will be provided by DBH Resources.
“ConstructInsure” can be provided for any sized Californian Construction firm.
- Standard EPLI coverage with third party extension
- Limits up to $5,000,000
- Defense costs outside the limits – up to $1m in addition
- Wage and Hour defense costs coverage - sub limit
- IRCA defense costs coverage – sub limit
- Risk Management costs inclusive within the premium
- Minimum premium $3,500
- Minimum retention $2,500
Contact
For more information or to apply please:
- Call freephone: 888 886 JHIS
- Call our San Francisco office: 415 874 3713
- Email us at: info@jansenandhastings.com