What’s Happening with EPLI in New York? Key Developments and Trends

The Insurance Information Institute says that the number of lawsuits that employees file against their employers has been rising. Employment practices liability insurance (EPLI) offers important protection for any employer. Here’s a look at what’s happening with EPLI now.

EPLI Rates Are Trending Upward

Most employers have been paying more for EPLI coverage recently.

The Q3 2021 P/C Market Report from The Council of Insurance Agents & Brokers shows that employment practices rates were up 10.3%. This is just an average, and some employers have seen larger hikes. Risk & Insurance notes in addition to the rising premiums, the EPLI market shows signs of tightening, and some insurers are adding exclusions.

The Pandemic’s Impact on EPLI

The COVID-19 pandemic has created many new EPLI exposures as employers and employees disagree over safety issues, work-from-home policies, vaccine mandates and more, and this is a big part of what’s happening with EPLI. Reuters reports that liability insurers are worried about a rise in EPLI claims as workers head back to the office.

To get a clear look at what’s happening with EPLI and COVID, we can look at the COVID-19 Employment Litigation Tracker from Fisher Phillips. As of December 2, 2021, there have been 4,198 cases. Some states are seeing more litigation than others. In New York, there have been 282 cases, which equals 14.50 cases per 1 million people. In New Jersey, there have been 473 cases, which equals 53.25 cases per 1 million people.

In just one example of COVID-related litigation, Reuters says that four employees filed a proposed class action suit in Manhattan against Bristol Myers Squibb Co over allegations that the company refused to grant them religious exemptions for the COVID-19 vaccine mandate.

Discrimination and Harassment Claims

COVID can’t take all the blame for what’s happening with EPLI rates. Other factors, including discrimination and harassment litigation, also play a role in the current market.

Recent social movements have raised awareness of issues related to sexual harassment and racial discrimination. These trends have had a noticeable impact on employment claims. The EEOC says that charges alleging sexual harassment resulted in monetary benefits of $68.2 million in 2019. That’s the highest payout on record. In 2020, the monetary benefits totaled $65.3 million, which is slightly lower but still substantially higher than the pre-2019 amounts.

Getting Ready for Renewal

You can’t ignore what’s happening with EPLI. At your next renewal, you can expect to see rate increases, and you may also face stricter coverage terms. At the same time, the risk of lawsuits is high, so this is not a good time to skimp on coverage.

Review your policies, manage your risks and work with an agency that can help you get the coverage you need. Contact BNC for a consultation and quote.