Marsh Launches Comprehensive Risk Transfer Solution to Rising Wage and Hour Claim Exposure

  Marsh Launches Comprehensive Risk Transfer Solution to Rising Wage and Hour
  Claim Exposure

New Policy Fills Void in Market with Available Coverage of Up to $100 Million

Business Wire

NEW YORK -- January 8, 2013

With the number of wage and hour claims against employers on the rise, Marsh
today announced the availability of a new, comprehensive insurance solution
that reimburses companies for defense costs, settlements, and judgments for
actual or alleged violations of the Fair Labor Standards Act (FLSA) or similar
state and local laws.

The Marsh Wage and Hour Preferred Solution is offered exclusively through
Marsh and its international specialty placement broker Bowring Marsh. The
policy provides up to $100 million of insurance coverage for wage and hour
claims, which generally are excluded under traditional employment practices
liability insurance policies. Examples of such claims include allegations that
an employer failed to pay employees for overtime hours worked, failed to
provide or pay for meal breaks and rest periods, or misclassified employees as
exempt rather than non-exempt from legal overtime provisions.

The number of these claims filed in federal court under the FLSA — the federal
statute that governs payment of wages and prescribes minimum wages to workers
— has risen dramatically over the last several years. In 2011, wage and hour
claims accounted for 84% of all employment class-action lawsuits, more than
tripling the combined total of employment discrimination claims and Employee
Retirement Income Security Act (ERISA) claims, according to law firm Seyfarth
Shaw LLP. And NERA Economic Consulting reports that between 2007 and 2011
companies on average paid $8.5 million to settle wage and hour lawsuits.

The Marsh Wage and Hour Preferred Solution is tailored for companies with more
than 4,000 employees and includes a wage and hour risk management toolkit —
provided by Mercer — to assist companies in identifying and addressing
potential areas of exposure under the FLSA.

“Wage and hour exposure remains the single largest employment
practices–related exposure for US employers, but employers have historically
had limited protection from the often staggering costs of wage and hour
claims,” said Adeola Adele, Marsh’s Employment Practices Liability Insurance
Product Leader. “The Marsh Wage and Hour Preferred Solution addresses this key
exposure through a risk transfer product, and, at the same time, provides
companies with an assessment toolkit to assist in proactively managing their
exposure.”

About Marsh

Marsh, a global leader in insurance broking and risk management, teams with
its clients to define, design, and deliver innovative industry-specific
solutions that help them protect their future and thrive. It has approximately
26,000 colleagues who collaborate to provide advice and transactional
capabilities to clients in over 100 countries. Marsh is a wholly owned
subsidiary of Marsh & McLennan Companies (NYSE: MMC), a global team of
professional services companies offering clients advice and solutions in the
areas of risk, strategy, and human capital. With over 53,000 employees
worldwide and annual revenue exceeding $11 billion, Marsh & McLennan Companies
is also the parent company of Guy Carpenter, a global leader in providing risk
and reinsurance intermediary services; Mercer, a global leader in talent,
health, retirement, and investment consulting; and Oliver Wyman, a global
leader in management consulting. Follow Marsh on Twitter @Marsh_Inc.

Contact:

Marsh
Sally Roberts, +1 303 952 9453
sally.roberts@marsh.com
or
Anand Poola, +1 212 345 4292
anand.poola@marsh.com
 
Press spacebar to pause and continue. Press esc to stop.