How Safe is Safe?: The Impact of COVID on Employer Practices Liability
In addition to the multiple and myriad changes already introduced to the business community by COVID-19, employers may now add possible increased liability and costs, perhaps ironically due to policies instituted to help stem the spread of the virus.
According to a 2021 report conducted in part by the Insurance Information Institute, employers need to be aware of the impact of the pandemic, particularly a shift in the burden of proof onto the employer for certain types of claimants and the changing exposure from people working from home.Workers compensation saw five consecutive years through 2019 where that line of business posted an underwriting gain, but the institute-sponsored study said that trend could change with COVID-19. Employer practices liability insurance (EPLI) – separate from workers compensation – has the potential to feel an impact from the pandemic, as well.Mask-wearing mandates, vaccination or regular COVID testing requirements, increased flexibility and the associated variables of home-based work, plus similar pandemic safeguards, may fall prey to varying levels of adherence.This lack of clarity has the potential for coverage-related issues, should employees become infected and require ongoing treatment for the virus. Similarly, this uncertainty feeds into the increased premium costs for employers to adequately protect their businesses.As new variants of the COVID virus develop and spread – even as vaccines become more refined and effective – the pandemic will continue to have wide, deep, and continuous ripple effects on all aspects of business, including EPLI and workers compensation insurance.For more information on these matters and how to properly prepare, contact the professionals at The Reschini Group today.
Copyright 2022 The Reschini GroupThe Reschini Group provides these updates for information only, and does not provide legal advice. To make decisions regarding insurance matters, please consult directly with a licensed insurance professional or firm.Source: https://www.iii.org/press-release/recession-pandemic-to-affect-p-c-underwriting-results-new-triple-i-milliman-report-shows-081320
Make No Mistake: Best EPLI Coverage Gained as a Standalone Policy
You can’t be kind of pregnant. You can’t be kind of deceased. With some of life’s developments, you really don’t have a choice. It’s all or nothing.
But in others, the choice remains open – yet, it might be best to go all-in anyway. Such is the advice of professionals when it comes to Employment Practices Liability Insurance, or EPLI.The International Risk Management Institute defines EPLI as: “A type of liability insurance covering wrongful acts arising from the employment process. The most frequent types of claims covered under such policies include: wrongful termination, discrimination, sexual harassment, and retaliation. In addition, the policies cover claims from a variety of other types of inappropriate workplace conduct, including (but not limited to) employment-related: defamation, invasion of privacy, failure to promote, deprivation of a career opportunity, and negligent evaluation. The policies cover directors and officers, management personnel, and employees as insureds.”Coverage can be issued through an addendum to a General Liability policy or as a separate endorsement. EPLI also typically carries a warranty covering whether the policyholder is aware of any workplace issues related to harassment, discrimination, or any of the other issues cited in the definition above.EPLI issued as a full standalone policy remains the preferred method, since the policy is designed to provide a more robust coverage with separate limits from the General Liability form. Regardless of how you purchase it, having EPLI coverage is highly recommended.There are some instances where it’s smart to go all-in, even when you have the option to take a smaller, easier course. But don’t be fooled. Be smart. Be covered fully. EPLI is one of those instances.Contact the team of professionals at the Reschini Group for more information on how an EPLI policy can help protect your organization.
Copyright 2019 The Reschini GroupThe Reschini Group provides these updates for information only, and does not provide legal advice. To make decisions regarding insurance matters, please consult directly with a licensed insurance professional or firm.