Why Employment News?

Over the last eighteen months, we have seen a concerning increase in employment-related claims. We have attempted to address employment-related issues in our bi-monthly newsletter, but with the complexity of the employment issues that our clients face, we concluded that a resource focused exclusively on employment-related topics would be helpful to our clients.

We welcome your feedback, as always. If you have questions or topics that you would like to see us address, please contact Sara Sterley, Director of Risk Management Education.

Claims Corner
Heather Cox, Claims Services Manager

Embezzlement claims are on the rise. We often see more frequent and more severe embezzlement claims during economic downturns. Because of the increase in claims, we wanted to remind you of the importance of reporting embezzlement claims as soon as you suspect that an embezzlement claim may have occurred. According to the policy language, it is a condition of coverage that the organization must:
  1. Give written notice to the insurance company at the earliest practicable moment, and in no event later than 90 days after the initial discovery
  2. Furnish affirmative proof of loss with full details to the insurance company at the earliest practicable moment, and in no event later than six months after initial discovery
We have had a recent claim that was not reported within 90 days of it being discovered, which jeopardizes the coverage available to the client in this situation. Unlike homeowner's insurance, there is no penalty under your organization's insurance program for submitting an incident, even if you're unsure whether or not it will arise to the level of a full-blown claim. It is in your organization's best interest to call us at any time that you suspect any type of embezzlement activity because of the strict reporting guidelines under the embezzlement coverage.

Embezzlement claims are often very difficult and costly to investigate, which is why we have negotiated with the insurance company on your behalf to add expense coverage to the policy. The expense coverage affords the client with $25,000 to spend to document the embezzlement for the purposes of the claim (e.g. moneys spent on forensic accountants, time to procure documents, etc.).

Refer to your Insurance Overview for your location's specific limits and deductibles for all of the
coverages afforded under the insurance program, including embezzlement.

For more information about preventing embezzlement from occurring in the first place, review the Guide to Preventing Workplace Fraud from Chubb, the insurance company with whom we partner to provide the embezzlement coverage.

In the event that you suspect an embezzlement claim has occurred, do the following as soon as
  • Notify Bev Stiles or Heather Cox at MJ Insurance as soon as possible.
  • Remove all financial responsibilities from the individual immediately.
  • Begin the process of developing the details to the loss.

Employment Practices Liability Resources

The Employment Practices Liability coverage is provided by Chubb Group of Insurance Companies, one of the leaders in professional and management liability insurance coverage. Employment Practices Liability coverage protects an employer against claims made by employees, former employees, or potential employees that covers allegations of discrimination, wrongful termination, sexual harassment and other employment-related allegations. 

Chubb offers many resources to help our clients better understand and prevent employment-related claims, including the following:
  • website: a free online resources for clients seeking assistance with employment issues
  • Employment Practices Loss Prevention Guidelines Manual: a free booklet that discusses key employment issues in layman's terms and offers proactive ideas for avoiding EPL lawsuits
  • EPL Hot Line: the toll-free hot line enables employers to contact directly with a nationally recognized law firm for immediate answers to your EPL questions.
We are most excited to be able to offer the EPL Hot Line to our clients to assist you with your human resource and employment law questions. The Hot Line is available to employers all over the country, not just specially designated individuals at each organization's national headquarters like the previous helpline.

The toll-free number is (888)249-8425. In order to connect with a Hot Line attorney, you will need to reference your EPL policy number, which should be located on the Insurance Overview that was emailed to you at the inception of your policies. Please contact your Account Executive if you have trouble identifying your policy number.

When an Employee is Injured

The first 24 hours is critical to managing any workers’ compensation injury. Who does what and the sequence and manner in which it is carried out is critical to the out come of the workers’ compensation claim. Best practices indicate that employers should:
  • Respond to an injured employee in a caring and non-judgmental way.
  • Escort the injured employee to the medical provider.
  • Investigate accidents immediately (within 24 hours) and document findings and corrective actions.
  • Report the claim to Bev Stiles at MJ within 24 hours of the employee’s report of injury
Read additional tips on post-injury management here.

Check References

If you are hiring a new employee, you are always welcome to call Bev Stiles at MJ Sorority to see if there has been any past claim activity associated with the potential employee.
888.442.7470 (ext. 7582)

FLSA Implications

Essential reading for employers on Fair Labor Standard Act implications for House Directors from Fraternal Law.

Want to learn more?

We have many more employment-related resources on our Resource Library:

Risk Management Guide for Slips, Trips, and Falls

Slips, trips, and falls make up the majority of the workers' compensation claims that we see for women's fraternities and sororities. Review this guide for some tips on how to minimize slips, trips, and falls at the chapter house.

Employee Safety Basics

Now is a great time for your employees to review some safety reminders. We encourage you to have your House Directors and other employees listen to this webinar on the topic.

Quick Reference Guides: House Corporation Volunteers

We have attempted to create a one-stop-shop section of our website specific to House Corporation volunteers that links to the most useful resources available.
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