Jeremy King Quoted in Law360 on How Immigration Enforcement Risks May Fall Into Coverage Gaps

Chair of Olshan’s Insurance Coverage Practice Jeremy King was quoted in a Law360 article (subscription required) on how, amidst broadening and intensifying immigration enforcement actions by the U.S. government, businesses concerned about their risks may fall between a gap in traditional lines of coverage for government investigations and employment-related liabilities. Policyholders concerned about the potential exposure of their workforces can find themselves in a bind when seeking coverage under their directors and officers insurance and employment practices liability insurance. “If there is an uptick in enforcement activity,” Jeremy said, “it may well be that there becomes more of a market to have those supplements expand and have insurers willing to underwrite even more of that kind of risk in exchange for premiums.” He explained that industries that are particularly reliant on noncitizen labor, such as the farming and hospitality industries or the tech industry, which relies on workers with H-1B visas, have an elevated risk profile in this enforcement environment. Jeremy added that, like cyber exposures, companies will have to assess their operations and workforce to understand the impacts to their bottom line and their risk transfer options. “Large-scale shifts in government and government enforcement, whether it’s in this area, environmental law, securities regulations, etc., does cause a ripple effect and the need to reassess insurance coverage options and the company’s risk profile,” he noted.