Get A Quote News Contact Us Home Page About Us Carriers Services

Contact Us
Blog RSS Feed Like Us on Facebook Follow Us on Twitter Connect With Us

With the passage of power to the new Trump administration, enforcement of laws prohibiting illegal immigration will likely ramp up dramatically as compared with the Obama administration. Accordingly, many more businesses can soon expect to receive unannounced "visits" by US Immigration and Customs Enforcement (ICE) agents.

Given this new environment, insureds should request that their insurers add an "Immigration Coverage Extension" (also termed an "Immigration Investigation Defense Expense Sublimit" and a "Sublimit for Immigration Claims Endorsement") to their employment practices liability insurance (EPLI) policies.

Essentially, these endorsements cover "wrongful immigration acts," which are actual (or alleged) violations of the Immigration Reform and Control Act of 1986 (or any similar state or federal laws) that result in "immigration claims." Such claims normally involve the costs of defending against criminal investigations of insureds by various governmental agencies. These investigations are usually in response to the alleged hiring or harboring of illegal aliens.

The need for such coverage arises from the fact that there are substantial immigration-related exposures not covered by standard EPLI policy forms. More specifically, standard definitions of "employment-related wrongful acts" do not entail the defense costs necessitated by ICE investigations, arrests, and prosecutions.

Coverage amounts offered under immigration endorsements typically range from $25,000 to $100,000. The endorsements are written on a sublimited basis, meaning they add no additional coverage limits to the policy. Thus, if an EPLI form with a $1 million limit contained a $50,000 immigration investigation coverage extension, payment of that amount would reduce available limits (for all other covered, garden-variety employment losses) to $950,000.

While the vast majority of insurers writing EPLI policies offer some version of this endorsement, not all automatically include it when they provide coverage. Often, insureds can obtain it only by requesting the extension.

Although many businesses have at least some exposure to the kinds of losses addressed by immigration coverage endorsements, companies engaged in food processing, construction, and agriculture are especially vulnerable to such claims.
Posted 8:00 AM

Share |

No Comments

Post a Comment
Required (Not Displayed)

All comments are moderated and stripped of HTML.
Submission Validation
Change the CAPTCHA codeSpeak the CAPTCHA code
Enter the Validation Code from above.
NOTICE: This blog and website are made available by the publisher for educational and informational purposes only. It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional in your state. By using this blog site you understand that there is no broker client relationship between you and the blog and website publisher.
Blog Archive

View Mobile Version
Home Page About Us Carriers Contact Us