With the growing incidence of litigation, the difficult economy, and the tightening of the insurance marketplace, insurers are adding more and more exclusions and limitations to their policies.

For example, a common exclusion eliminates coverage for wage and hour disputes on overtime pay for nonexempt employees. Some carriers are now extending this exclusion to wage claims outside the specific “exempt/nonexempt” situation into areas such as disputes under the Federal Equal Pay Act of 1963, which addresses sex-based discrimination in determining the wages of male and female employees.

Another exclusion “expansion” affects the common prohibition against coverage for severance pay. This exclusion might be extended to exclude coverage for “front pay” (funds that an employee would have received had they not been wrongfully terminated).

To learn how much and how often such additional limitations affect your coverage, contact our professional liability team. We make a point of staying on top of market changes, from overall availability and pricing to the specific changes that can alter an individual policy.