Author, Kevin Howard, CRIS, Account Executive, Rancho Mesa Insurance Services, Inc.
As insurance companies brace for a spike in claim filings due to COVID-19, one under the radar coverage that could be severely impacted is Employment Practices Liability (EPLI). With just over 22,000,000 employees recently laid off, terminated or furloughed nationwide, most experts anticipate that EPLI claim frequency will jump.
As an example, if just 1% of those employees referenced above filed wrongful termination claims, the EPLI industry could potentially see 220,000 new cases. This possibility alone, and the continued uncertainty with the economy, will very likely change how underwriters approach current pricing, retentions, exclusions, and other coverage terms.
The often mentioned “new normal” workplace requires us to proceed with caution to ensure your organization is protected against potential EPLI claims. Coupled with the exposure to wrongful termination suits, additional claim scenarios are unfolding daily that can include the following:
Certain groups of employees are targeted because of their national origin or because of suspicion of being infected, causing a discrimination or harassment claim.
Invasion of privacy concerns if employees are questioned about personal travel, health history, or family health history.
Employees may opt out of work-related events or meetings and believe they were retaliated against which could trigger a claim.
As an employer, having access to resources and responsive feedback from real people in this highly sensitive time remains critical. Rancho Mesa’s RM365 HRAdvantage™ platform provides our clients with a team of compliance experts that can walk you through these and many other COVID-19 related employer challenges. Visit Rancho Mesa’s Risk Management and Human Resource page to take the next steps.