June 16, 2008

The Department of Labor is in the middle of a five year effort to audit every labor organization in the country. As part of each audit, the DOL evaluates compliance with all Labor Management Reporting and Disclosure Act (LMRDA) requirements. Specifically, the DOL will audit whether you have any conflicts of interests based on your obligation to file the Form LM-30, Labor Organization Officer and Employee Report.

Filing requirements for the LM30 Report are difficult to understand and the filing criteria continue to change. Determining who must file, which transactions are reportable, and which exemptions may apply create understandable confusion and worry for labor leaders – not to mention the potential liability you face for alleged violations.

Investigations for LM30 related filing requirements can be costly to defend. And, since federal law prevents your union from defending officers accused of conflicts of interests, dishonesty or personal wrongdoing, which is how these cases would likely be treated, labor leaders must prove their innocence at their own expense before the union can reimburse them. Labor leaders could face defense costs of tens of thousands of dollars, putting them and their families at risk of bankruptcy and financial hardship.

ULLICO Casualty solves this gap in defense coverage with the Individual Labor Leader (ILL) endorsement on our Union Liability insurance policy. The ILL endorsement provides coverage for the costs of defense, settlement and appeals for labor leaders accused of: (1) receiving personal profit; (2) fraud; and (3 )conflict of interest.

The ILL endorsement is purchased as an endorsement to the Union Liability policy. For $100 annually, a labor leader will be entitled to $100,000 of defense cost coverage under the ILL endorsement. Other options are available as low as $25 annually for $25,000 of coverage. 

The ILL endorsement is additional coverage to what is provided by the Union Liability policy protecting unions and their labor leaders from four primary union liability exposures: (1)duty of fair representation; (2)employment practices liability; (3) financial management of the union; and (4) personal injury coverage.

Limits of liability for the Union Liability policy are available up to $5 million dollars. Each international union, district council and local union needs to have their own policy so their officers and assets are protected.

Who’s Got Your Blindside? To get a Union Liability policy from ULLICO Casualty Group and provide peace of mind for you and your union officers, call toll free at 1-888-315-3352 X 3 for more information or email John O’Brien at jobrien@ullico.com. Check out our website at www.ullico.com/casualty.

You deserve nothing less than the commitment and expertise from ULLICO Casualty Group.
We've got your blindside!

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