Broker Check

Trends in Employment Practices Liability

August 21, 2020

As reported by Jordan Kurkowski of AmWINS in The Edge and republished in CPCU Insights, these are the top eight trends in Employment Practices Liability Insurance (EPLI):

  1. COVID-19 is a developing event. Layoffs, remote work and return to work all create potential for claims including discrimination, harassment, invasion of privacy, negligent evaluation and possibly others.
  2. Black Lives Matter will impact employment and third party discrimination and harassment claims.
  3. #MeToo is driving an increase in sexual harassment claims and counter-claims.
  4. Equal pay laws and new prohibitions of inquiries about salary history.
  5. Gay and transgender claims of workplace discrimination.
  6. Age discrimination claims are growing with more older workers in the workplace.
  7. Wage and hour claims, with higher minimum wages and employee vs. independent contractor issues. (Wage and hour claims are usually excluded, with a sub-limit for defense.)
  8. Use of medical or recreational marijuana.

These trends are driving a hardening market, with 10-15% rate increases and placement problems with some classes (e.g. healthcare and hospitality) and states.

Although every organization with more than a few employees needs EPLI, reportedly only 23% of companies with less than 100 employees purchase it. Even among companies with over 1,000 employees only 40% have EPLI.

If your company does not have EPLI, Beacon can help you find a policy with the broadest terms and conditions.