What Risk Managers Want Included in EPLI Cover
In a recent study by Advisen on the U.S. Employment Practices Liability insurance market, certain patterns of EPLI buyers were revealed in surveying a select group of risk managers. Of the surveyed risk managers, 62% cited that they bought coverage to address their company’s exposures. Claims assistance by carriers was valued mostly highly (12%) while 9% valued the additional services offered under the policy in addition to competitive pricing.
When asked what was the most significant EPLI exposure, respondents stated wrongful termination and retaliation claims, followed by age and sex discrimination, harassment and wage and hour. Moreover, pregnancy-related and social media exposures were cited as recent exposures faced by companies.
Not surprisingly when asked what coverage risk managers want to see included in their EPLI insurance policy, there was resounding call for wage and hour coverage. This is due to the rise of wage and hour claims over the last several years as result of employee compensation and classification disputes. The majority of claims filed allege misclassification of employees, uncompensated “work” performed off the clock and miscalculation of overtime for non-exempt workers. Yet most with most EPLI policies, typically wage and hour must be requested of the carrier for it to be included. Furthermore, there is typically a sublimit to pay for defense coverage only, not loss of wage and hour claims.
Risk managers, according to the Advisen report, would also like to see the following enhancements included with EPLI cover:
- Claims advice or a legal advice hotline
- Tools for insureds to self-audit procedures
- Privacy, security, immigration and social media-related exposure coverage
- Choice of defense counsel
- Greater defense control on the part of insurer
Caitlin Morgan offers EPLI solutions to a wide range of industry segments, including assisted living facilities and nursing homes, educational institutions and privately held companies. For more information about our solutions and how we can address your clients’ employment practices exposures, please contact us at 877.226.1027.