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California business owners worry about protecting themselves and their businesses from employee lawsuits and employment liability. Under the large umbrella of management liability insurance products falls employment practices liability insurance, commonly referred to as EPLI. In today’s video, Mike Fusco speaks about the costs of EPLI in California. Mike also talks about the EPLI marketplace and the factors driving EPLI premium increases.
EMPLOYMENT PRACTICE TRENDS IN CALIFORNIA
It’s essential to understand the landscape of employment practice trends in California before speaking about EPLI costs. First, California is a litigious state. Employment attorneys are prevalent, and labor laws favor the employee versus the employer. Also, consider workforce reductions and layoffs as part of the COVID19 pandemic, which has added liability for insurance carriers. These trends and several others have caused a hardening EPLI market in California, and we expect additional difficulties in the years to come.
THE 2021 MARKETPLACE FOR EMPLOYMENT PRACTICES INSURANCE IN CALIFORNIA
2020 was a challenging year for EPLI carriers and policyholders, but 2021 has proven worse. We are realizing premium increases of 20%-25% for most EPLI clients and expect a further uptick to come. It’s also crucial to know while policy costs are increasing, so are self-insured retentions. In years past, we were successful in securing SIRs in the $1,000-$5,000 range. Now, those retentions start at $10,000, and it’s not uncommon to find retentions of $75,000 and above! And the hardening market doesn’t stop with higher premiums and retention. We also see lower sub-limits and more exclusions than ever before.
HOW TO SECURE PROPER PROTECTION
If you’re concerned with liability arising from wrongful termination, sexual harassment, and other employee lawsuits, it may be time to look at employment practices liability insurance. However, you must hire an agency that knows the EPLI market, especially in California. Many agents or brokers will not advise you correctly with all of the forms and exclusions to consider.
HOW TO WORK WITH FOA
The associates at Fusco Orsini have many years of experience placing EPLI in California for businesses of all sizes. If you are a client of FOA and have an interest in EPLI, don’t hesitate to get in touch with your broker or account manager for assistance. If FOA does not service your insurance and risk needs currently, please complete the form below. We will ensure that an associate reaches out quickly to help. Thank you for visiting us!