Employment Practices Employment Practices Liability andLiability and

Public Officials Liability Public Officials Liability InsuranceInsurance

2011 2011

Changes That May Affect Changes That May Affect YouYou

New Program In 2011

►BackgroundBackground How we got hereHow we got here ChoicesChoices DecisionsDecisions Selection of CarrierSelection of Carrier

►The Program The Program CoverageCoverage ProceduresProcedures

A Growing Problem

Employment Practices LiabilityEmployment 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

$26

$74

$126$113

$161

$128$132

$112$128

$247

$354

$0

$100

$200

$300

$400

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

We Had To Do Something

• 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?

Choices:

What’s the Difference?

► Our Coverage FormOur Coverage Form► Our AdjustersOur Adjusters► Our deductibles and Our deductibles and

co-paysco-pays► Our defense Our defense

attorneysattorneys► FlexibilityFlexibility

► Their Coverage FormTheir Coverage Form► Their AdjustersTheir Adjusters► Their deductibles Their deductibles

and co-paysand co-pays► Their defense Their defense

attorneysattorneys

► ??At What Cost The Savings?At What Cost The Savings?

MEL JIF INSURANCE

MEL CommitteeMEL Committee►Examine issuesExamine issues►Explore alternativesExplore alternatives►Prepare RFPPrepare RFP►Review ResultsReview Results► Interview CarriersInterview Carriers►Make recommendationsMake recommendations

2011 EPL Program2011 EPL ProgramRequirements From Commercial Requirements From Commercial

CarriersCarriers

►Match MEL Policy FormMatch MEL Policy Form►Recognize our Defense PanelRecognize our Defense Panel►Match Current Match Current

Co-Pays/DeductiblesCo-Pays/Deductibles►Match Current Rating StructureMatch Current Rating Structure

2011 EPL Program2011 EPL Program

► Match MEL Policy FormMatch MEL Policy Form► Recognize our Defense PanelRecognize our Defense Panel► Match Current Co-Pays/DeductiblesMatch Current Co-Pays/Deductibles► Match Rating StructureMatch Rating Structure

►Elimination of JIF SurchargeElimination of JIF Surcharge►Savings of 20% vs 2011 MEL Savings of 20% vs 2011 MEL

RenewalRenewal

No Longer a MEL Program!

Program ComponentsProgram Components

►Now A JIF Program*Now A JIF Program*►XL Insurance – “A” XV RatedXL Insurance – “A” XV Rated►Summit Risk Services – XL ClaimsSummit Risk Services – XL Claims

Stagliano, DeWeese & Stagliano, DeWeese & FuscellaroFuscellaro, P.A., , P.A., Kearns, Vassallo, KearnsKearns, Vassallo, Kearns

►Scibal Associates – Claims Scibal Associates – Claims AdvocateAdvocate

►HelplineHelpline

* MEL will continue to provide Risk Management Services

Defense Attorneys*

* With concurrence of XL/Summit

ACM/TRICOACM/TRICO BURLCOBURLCO

A. Michael BarkerA. Michael Barker William Kearns, Jr.William Kearns, Jr.

James Birchmeier and James Birchmeier and Donald PowellDonald Powell Joseph BetleyJoseph Betley

Allan RichardsonAllan Richardson John GillespieJohn Gillespie

Michael MaddenMichael Madden George BotcheosGeorge Botcheos

Claims ProceduresClaims Procedures►All claims to Scibal All claims to Scibal as per current procedureas per current procedure

Copy to DeWeese or KearnsCopy to DeWeese or Kearns►Scibal will review coverageScibal will review coverage

Scibal forwards to Summit/XLScibal forwards to Summit/XL►Summit will reviewSummit will review

Assign adjuster/claim numberAssign adjuster/claim number Acknowledgement letter to ClerkAcknowledgement letter to Clerk Send ROR letterSend ROR letter Assign counsel with input from DeWeese/KearnsAssign counsel with input from DeWeese/Kearns

Claims ProceduresClaims Procedures**

► ““Sweep” letter Sweep” letter (December 17, 2010)(December 17, 2010) Nothing falls through the cracksNothing falls through the cracks

► Procedures letter Procedures letter (December 23, 2010)(December 23, 2010)► Report all claims within 14 DaysReport all claims within 14 Days

““any incident, event, occurrence, loss or accident any incident, event, occurrence, loss or accident that might give rise to a Claim.” that might give rise to a Claim.”

Experience has demonstrated that reporting such Experience has demonstrated that reporting such potential claim could result in early resolution with potential claim could result in early resolution with the occurrence of no expenses. XL/ Summit will the occurrence of no expenses. XL/ Summit will offer assistance with early resolution of Claims and offer assistance with early resolution of Claims and potential claims that are reported to them in a potential claims that are reported to them in a timely fashion.timely fashion.

*All existing claims will continue to be handled by the MEL.

Early MediationEarly Mediation►Early identification of matters that Early identification of matters that

could lead to problems/litigationcould lead to problems/litigation►XL insurance to provide $1,000 XL insurance to provide $1,000 ►Parties meet with retired judgeParties meet with retired judge►Effort to resolve prior to litigationEffort to resolve prior to litigation

Procedures Being Developed

EPL HelplineEPL HelplineJIF Branded Website

January 1, 2011

►Attorneys answer Attorneys answer specificspecific HR & HR & Employment Law questionsEmployment Law questions Via website or telephoneVia website or telephone Confidential and timely responsesConfidential and timely responses

►On Line resourcesOn Line resources►Two registered users from membersTwo registered users from members

Must be employees – Not SolicitorMust be employees – Not Solicitor

►Unlimited accessUnlimited access

HELPLINE► Question of the MonthQuestion of the Month► Case of the MonthCase of the Month► HR AlertsHR Alerts► Federal/State News UpdatesFederal/State News Updates► HR PostersHR Posters► Model Policies/HandbookModel Policies/Handbook► Training Resources On LineTraining Resources On Line

Managers/SupervisorsManagers/Supervisors Slides, Audio, File DownloadsSlides, Audio, File Downloads Small ChaptersSmall Chapters Certificates of CompletionCertificates of Completion

https://www.hrhelpline.com/https://www.hrhelpline.com/njmel/njmel/

►Must pre-registerMust pre-register►You will be contactedYou will be contacted►Given login/passwordGiven login/password►Provided instructionsProvided 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?What About EPL Hotline?

►““Helpline” replaces “Hotline” Q&AHelpline” replaces “Hotline” Q&A►““Helpline” is more comprehensiveHelpline” is more comprehensive►Hotline Program expanded to include:Hotline Program expanded to include:

TrainingTraining Handbook ReviewHandbook Review Additional uses?Additional uses?

TBD

What’s Next?What’s Next?►Advise all involved personnelAdvise all involved personnel►Appoint Appoint HelplineHelpline contact contact

Reply to E-Mail requestReply to E-Mail request

Two Year ProgramTwo Year Program

►Rates locked in for two yearsRates locked in for two years►After two years each JIF evaluatedAfter two years each JIF evaluated► JIF/Member experience will decideJIF/Member experience will decide

RatesRates DeductiblesDeductibles Co-PaysCo-Pays RenewalRenewal

► It is in your hands!It is in your hands!

Thank You

Questions