Employment Practice Insurance (EPLI) Trends 2021

Employment Practice Liability Insurance or EPLI as it’s commonly known is a unique form of commercial insurance which covers employers for claims which can arise from wrongful employment acts such as discrimination, harassment, wrongful termination, and more.  Even if an employer does everything by the book, and you have great relationships with your employees, the risk of a lawsuit is ever-present.  This is why EPLI is a must for employers large and small.

 

Here are a few of the Employment Practice Liability trends we’re seeing in 2021. 

• Covid-19 

As you already know, Covid has forced just about all employers to make workplace changes; including layoffs, furloughs, or remote working.  We’re seeing huge numbers of lawsuits in this area alleging unsafe work conditions, failure to take property precautions, inadequate personal protective equipment which contributes to employees getting sick or even dying.  Discrimination lawsuits relative to remote working, layoffs and furloughs as well. 

• Social Movements continue to impact employment litigation. 

The #MeToo movement continues to drive sexual harassment lawsuits against employers, and according to the EECO was responsible for a 50% increase in lawsuits over the past several years.  The Black Lives Matter movement has the potential for race-related discrimination and harassment lawsuits as well.  BLM makes the issues of diversity and inclusion even more critical today among employees and employers.

• LGBTQ+ Protections 

Employers need to recognize that The U.S. Supreme Court confirmed in 2020 that Title VII of the Civil Rights Act protects gay and transgender employees from discrimination and harassment, and assure that all employees feel properly supported in the workplace. 

• Marijuana Legalization

More and more states are legalizing the use of marijuana for recreational and medicinal purposes which can restrict an employer’s ability to conduct drug tests for weed, so proper adjustments of workplace policies are needed.  Further, there have been employment lawsuits recently which allege workplace discrimination and wrongful termination for employees who have used medical marijuana.  Again, policies and procedures need to be readdressed on this subject. 

Here’s the bottom line.  Employment lawsuits continue to grow in volume and costs.  Employers of all sizes need to respond accordingly.  First, make sure your HR policies and procedures are updated, correct, and proper.  This is not a DIY issue.  Seek the assistance of qualified Employment Counsel.  If you need help finding an employment attorney – let me know, I’d be happy to refer you to someone that fits your needs. 

Second, if you haven’t purchased employment practice liability, now is the time to do so.  The costs associated with defending against an employment action are huge.  This is something you don’t want to pay for out of pocket. 

Having the right insurance protection in place will help pay for your defense and ultimately settlement if it comes to it. 

Have other questions relative to employment practices insurance or any other form of business insurance? Why not click the button below to get a conversation started. I promise no pressure, no sales gimmicks, just some conversation to see if what we do is a good fit for you and your firm. I work across the U.S. and love helping business owners and decision-makers with their insurance and risk problems.

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