Category Archives: Employment Practices Liability Insurance (EPLI)

Comments on the EPLI Market Place

Why rates are increasing at a faster pace than most commercial liability products, and comments on Wage & Hour and Social Media coverages.

Less dry, more personal – my WRINTV interview on the EPLI marketplace, in which I expand on some of my thoughts in EPLI Market Survey 2013.


Updates to Our EPLI Market Survey 2013 – The HSB Product

We wrote about the HSB fully-reinsured EPLI product in our December EPLI Market Survey.  We call it a ‘private label’ product as it is developed, serviced, and continually enhanced by HSB but provided by specific insurers.  This product has been an important coverage offering for carriers that may wish to take a more turn-key approach to the complex EPLI line.

HSB notes that the product uses their claims adjusting services (not just guidelines) and that it has recently been made available for employers with fewer than 100 (previously 50) employees. By referral, the product may be available for employers with up to 500 employees.

Specialty Insurance Year End Wrap-up Webinar 12/12 at 11 AM by Advisen

Please forgive me for a bit of self-promotion, but this program should be really good; I already learned a lot from our panelists’ conference call.

On Thursday morning, December 12 at 11 AM (eastern time), I will be on a panel moderated by Advisen’s David Bradford to review the trends and developments of 2013 in Specialty Lines insurance. The panel of experts will also provide insight into 2014 & beyond. This free, one-hour webinar is sponsored by OneBeacon Professional Insurance; registration is here.

The panel includes:

  • Paul Romano, President, OneBeacon Professional Insurance
  • David Lewison, National Practice Leader, AmWINS
  • Rick Betterley, President, Betterley Risk Consultants
  • David Bradford, President, Research & Editorial division, Advisen (moderator)

The economy continued to improve in 2013, which generally benefitted the insurance market. For specialty insurers, however, the year posed a number of challenges. Healthcare reform continued to reshape the risk landscape of hospitals and other healthcare organizations. Lawyers continued to feel the fallout of the credit crisis and recession as claims activity remained above historical averages. Network security challenges further evolved in the endless cat-and-mouse game between cyber criminals and system security experts.

This webinar will review the trends and developments of 2013 in “Specialty Lines” insurance. Our panel of experts also will provide their insights into the factors that will influence the market in 2014 and beyond.

Hope you can join us!

Private Company Management Liability Markets – WRINTV interview

WRINTV asked me to share our findings about the Private Company Management Liability market and product trends; here is the link to the interview.  It builds off of our August issue (Private Company Management Liability Market Survey 2013).

I continue to be impressed with the depth and breadth of WRIN TV’s content (and not just because I am a source, although I do like the opportunity to share our findings with its audience).  John Greene, Ken Simon, and their colleagues at World Risk and Insurance News have really done something special by creating and nurturing this resource.  Well done.

A Quick Look at EPLI Claims – the Worst States (updated to include new information)

Since EPL claims in certain states are becoming even more of a problem for carriers, we did a brief survey asking which states are the worst.  This is non-scientific and only represents the responses of 7 carriers, but they are worth noting.

The question asked was “Which are the 5 worst states for EPLI claims?”

The responses were:


# of Times Mentioned

































Each tick mark equals the number of times this state was mentioned.

Several underwriters mentioned that both NY and Texas were problems ‘in and around larger cities.’

Keep in mind that not all underwriters may have a presence in each state, which could explain some of the variability.

EPLI Insureds’ View of the Product – including Wage & Hour coverage

Last week I presented a webinar for clients and friends of HR That Works, a human resources management and training company.  My presentation was on the findings of The Betterley Report EPLI Market Survey 2012 to an audience of 100 or so HR professionals and insurance brokers.

During the webinar, we polled the audience on 3 topics near and dear to my heart.  Although the audience is not a statistically valid group, and indeed if they were on this webinar, they were probably a stronger-than-average group of professionals, I thought the poll results are worth sharing.

Here are the questions and the responses:

  • Are you (or your clients) aware of the value-added risk management services available to insureds?  Out of 25 votes cast, 21 were ‘yes’ and only 4 were ‘no.’  I am pleased that so many insureds are aware of these services; a few years ago I suspect the awareness was just the opposite.
  • Are you (or your clients) confident that an EPL insurer will provide you with the best legal counsel?  Out of 27 votes, 14 said ‘yes’, and unfortunately 13 said ‘no.’ We are concerned that the large number of ‘no’ votes is all too reflective of insured’s opinion of their insurers; does the skepticism come from bad experiences, the pervasiveness of panel counsel requirements, or a general unhappiness with litigation that is understandable?
  • And finally – Would you (or your clients) add Wage & Hour coverage if it cost up to 50% more than the EPLI policy?  In describing the question, I added that I was referencing full Wage & Hour, not just defense costs.  25 responded, of which 16 voted ‘yes’ and 9 said ‘no.’  That struck me as a pretty strong vote for coverage

A recording of the webinar is here for the next couple of months, thanks to the generosity of Don Phin of HR That Works.

EPL Market Survey 2012 webinar

A quick note – I’ll be presenting the findings of EPLI Market Survey 2012 in a webinar hosted by HR That Works. The webinar is on January 23rd at 2 PM (EST) and has been approved for 1 strategic recertification credit hour toward PHR, SPHR and GPHR recertification through the HR Certification Institute.
Registration is free and here.