Employment Practices Liability in a Post-pandemic World

Professional
// June 2, 2022
Reading Time: 3 minutes

Photo of woman sitting at a computer with a mask on

Two words can summarize what the employment practices liability (EPL) market has been like since March 2020: continually evolving. Whether it’s coverage, premium, retentions or industry, everything that was once stable is now anything but.

As the post-pandemic world starts to emerge, so does the importance of EPL coverage. The past two years have produced more than just COVID-19 headlines for employers, and potential legal landmines such as social justice movements, nuclear verdicts, social media, pay equity and employee privacy are not going away. Now factor in the increasing cost of a legal defense and the complexity of operating a business in 2022 and beyond, and the importance of EPL coverage for your insureds is clear.

The current hard market is being driven primarily by the continuation of EPL claims as a result of the pandemic. According to Fisher Phillips, over 5,000 pandemic-related lawsuits have been filed against employers since the beginning of the pandemic, covering everything from employee leave concerns, remote work options, discrimination related to workplace adjustments, retaliation, wage and hour issues, unsafe work conditions and vaccine mandates. As a result, premiums and retentions have continued to increase on all business as there is less competition and significant pressure on insurers navigating nuclear verdicts and social inflation.

As carriers have reacted to the current legal market, underwriting restrictions related to COVID-19 are being lifted. Many insurers are willing to reconsider EPL risks that may have been unfavorable during the height of the pandemic and have generally seen up to a 25% increase in premium across the country.

Every employer needs a comprehensive EPL policy as part of their risk management approach to protect their business from the rising costs of defending against various claims. We offer broad EPL coverage and risk management services, including:

  • Fair Labor Standards Act (FLSA): $100,000 sublimit for defense and indemnity of wage and hour violations (not available in California and Florida)
  • Defense outside the limit of liability (not available in California or for insureds with over 200 employees)
  • Competitive retentions
  • Third-party discrimination and harassment option for most classes
  • Free access to PeopleSystems, a third-party human resources consultation helpline

For more information about our product, please reach out to your Professional Lines underwriter.

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As always, thank you for your support and business.

Contact Mike Gentile
Assistant Vice President, Underwriter – Travel | 888-523-5545, ext. 7611

Written by Chris Lavelle
June 2, 2022

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