Providing Labor Unions with Customized Professional Liability Coverage.
Labor entities need unique insurance coverage because their core mission of collective bargaining is typically excluded in standard professional liability insurance policies. To meet the needs of labor unions, Encore Fiduciary has crafted a Labor Professional Liability Insurance Policy for International, Regional, District Council and Local unions, as well as Joint Apprenticeship Training Committees and Funds, and other labor related associations to cover these exposures.
Unions face lawsuits brought by employers, union members, union employees, or state and federal regulators, such as the National Labor Relations Board “NLRB” and the Equal Employment Opportunity Commission “EEOC.” Typical allegations range from claims of financial mismanagement to wrongful termination to harassment, discrimination, retaliation, and invasion of privacy, among others.
Encore Fiduciary is a long-term leader in defending America’s labor unions from complex professional liability risks. Encore’s Labor Professional Liability is customized for 501(c)(5) labor entities, providing defense and indemnity coverage, including for wrongful acts such as breach of duty of fair representation, employment practices and personal injury. Our policy also includes optional Individual Labor Leader coverage to cover individual liability that cannot be indemnified by a Labor Union under federal law.
Labor Professional Liability policies are designed to protect the Union-related entities named in the policy, but also the officers, directors, board and committee members and other leaders of a labor union or labor non-profit entities. Directors and officers of labor unions have a professional responsibility to fairly represent their union’s members. The Encore Labor Professional Liability Policy provides coverage for collective bargaining risks, including the duty of fair representation, employment practices liability, and certain personal injury risks.
Members of the union’s board, employed directors or managers, business agents and any employees or volunteers who manage or handle funds or contractual decisions of the union can be scheduled onto the endorsement. At the time the policy is bound, the insurance broker should provide the schedule of leaders, including names and titles, electing coverage and the desired amount per leader.
While most other business leaders can stop at purchasing a professional liability insurance policy, labor leaders also need coverage designed just for themselves. The reason is that federal labor law treats union leaders differently. Under the Landrum-Griffin Act, a union cannot pay for the defense of union officials facing allegations of personal profit, fraud, or conflict of interest. This law also prevents a union from using union funds to pay for insurance against these types of claims — essentially rendering union leaders guilty until proven innocent.
Encore Fiduciary solves this critical gap by offering labor leaders Individual Labor Leader coverage specially designed to protect their individual liability. The Individual Labor Leader coverage provides reimbursement of defense costs for union leaders facing allegations for which their union cannot provide indemnification. This coverage protects the personal assets of a labor leader.
Encore Fiduciary specializes in insurance for labor non-profits employee benefit plans. Insurance brokers rely on Encore Fiduciary because we are experts with real-world experience in complex professional liability transactions.
Claims are managed by staff with expertise and unique knowledge of labor unions, joint apprenticeship training facilities and related non-profit entities. We are responsive and proactive and understand the complex nature of labor professional claims.
Encore provides expert in-house claims service to its management and professional liability insureds. We have decades of industry experience resolving complex claims and are advocates for clients in which we work proactively to manage claims, reduce claims expense, and drive excellent results. We keep defense lawyers honest to prevent litigation waste, and work with law firms who share our results-oriented values.
Policy offered nationally on admitted basis through Hudson Insurance Company, one of the most dedicated carriers for labor non-profits and employee benefit plans. Hudson has an A.M. Best rating of “A+” (Superior), financial size category XV ($2.0 billion or greater) and is a Department of Treasury approved surety.
We’ve put our fiduciary experience and expertise on paper and online in the “Fiduciary Liability Insurance Handbook,” for you to download and gain insight into why it is so critical that coverage is designed to fit an employer’s or entity’s benefit plan. Obtain your complimentary copy here.
Encore Fiduciary, division of Specialty Program Group LLC. Doing business in California as SPG Insurance Solutions License No. 0L09546.
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