1. EPL& EPLI Underwriting Trends: Baby Boomers Come of Age Panelists: Laura R. Zaroski, Esq. Donohue Brown Mathewson & Smyth LLC Donohue Brown Mathewson & Smyth LLC Thomas M. Caputo Thomas M. Caputo Rockwood Programs Rockwood Programs Stuart Ishimaru Stuart Ishimaru U.S. Equal Opportunity Employment Commission U.S. Equal Opportunity Employment Commission Catherine Padalino Catherine Padalino Chubb Specialty Insurance Chubb Specialty Insurance Paul Siegel, Esq. Paul Siegel, Esq. Jackson Lewis LLP Jackson Lewis LLP

2. 2006 Employment Practices & Fiduciary Liability Symposium New York City ~ April 10 & 11, 2006 Why companies don’t buy EPL….and why they should The 2005 Chubb Private Company Risk Survey

3. 2006 Employment Practices & Fiduciary Liability Symposium New York City ~ April 10 & 11, 2006 - - - - The 2005 Chubb Private Company Survey Commissioned independent study and interviewed 451 privately held U.S. companies to: Gain better insight into level of concern about management liability risks Measures taken to mitigate these exposures Incidence of events that were triggering litigation Financial impact of this litigation and other risk events

4. Asked questions around… Management liability risks involving:  Directors & Officers Liability  Employment Practices Liability  Fiduciary Liability  Crime Insurance  Miscellaneous Professional Liability  Workplace Violence  Kidnap/Ransom & Extortion

5. 2005 Chubb Private Company Risk Survey 67% of companies likely to broaden their product offerings. 20% plan to reduce or eliminate some employee benefits. 21% plan to reduce their workforce.

6. 2006 Employment Practices & Fiduciary Liability Symposium New York City ~ April 10 & 11, 2006 Employment Practices Findings

7. EPL lawsuits are common * According to the 2005 Chubb Private Company Risk Survey 35% Companies experiencing an EPL charge or lawsuit in the past five years

8. Small businesses have been sued * According to the 2005 Chubb Private Company Risk Survey Companies with 50 to 249 employees experiencing an EPL charge or lawsuit in the past five years 44%

9. Employment Practices Findings 34% reported costs ranging from $11,000 to $300,000. The average cost for this group was: * According to the 2005 Chubb Private Company Risk Survey $74,400

10. * According to the 2005 Chubb Private Company Risk Survey Percent planning to reduce work force in the year ahead: Percent planning to outsource functions/operations in the year ahead: 19% 22% 27% 33% Size of Company 25-49 employees 50-249 employees Reductions in force and outsourcing plans continue… Size of Company 25-49 employees 50-249 employees

11. Employment Practices Findings 90% have a written policy banning employment discrimination and sexual harassment 73% have human resources policies, procedures, and training programs to help prevent losses 64% provide employment discrimination and/or sexual harassment training.

12. Are companies financially prepared? * According to the 2005 Chubb Private Company Risk Survey 51% 31% Executives concerned about the financial impact of an EPL lawsuit: Size of Company 25-49 employees 50-249 employees

13. Are companies financially prepared? * According to the 2005 Chubb Private Company Risk Survey 81% 54% Do not purchase EPLI: Size of Company 25-49 employees 50-249 employees

14. Executives may be more at risk than they realize An EPL lawsuit can result in significant financial loss. Executives may mistakenly believe their company has insurance coverage elsewhere. Litigation against “deep pockets” is commonly seen as means to correct perceived wrongs.

15. EPL 2006: Market Update and Outlook 2005 “Year of the Class Action” Headlines Continue Recent Data from EEOC and JVR

16. Current Economic Impacts Significant merger & acquisition activity, which often results in layoffs Expense driven downsizing and outsourcing Displaced workers looking for evidence of adverse discriminatory impacts We expect a possible surge in age and race discrimination claims

17. EPL 2006: Hot Topics Wage and Hour Panel Counsel issues Pending and Prior Litigation