Aon Risk Solutions, the global risk management business of Aon plc, today announced at the Risk and Insurance Management Society's annual conference and exhibition the launch of a product to fill a void for organizations in the U.S. with 10,000+ employees: the long-standing uninsurable wage and hour risk. The policy provides coverage for defense and indemnity costs whether the organization settles out of court or goes to trial.
Wage and hour claims are a frequent impetus for class action lawsuits and represent a concern for virtually all employers. The Department of Labor reports nearly 80 percent of U.S. employers are in violation of at least some aspect of the associated complex federal laws. Wage and hour class action claims can include allegations of failure to pay overtime and failure to pay for time spent changing work clothes (known as donning and doffing), among others. The number of wage and hour class actions filed each year dwarf the number of class actions filed in other areas of employment disputes, such as alleged violations of disability, discrimination or benefits laws.
"This is the first time the insurance marketplace has offered this level of protection for wage and hour claims," said Tom Hams, Aon Risk Solutions' EPLI national practice leader. "We worked with leading defense law firms and our insurance trading partners for two years to develop the models necessary to bring this product to market for our clients. This product illustrates our commitment to seeking new and unique ways to add value and reduce total cost of risk for our clients around the globe."