| Coverage | Trend | Range |
|---|---|---|
| Employment practices liability (domestic and Bermuda) |
|
Flat to +5% |
| Wage and hour |
|
+5% to +15% |
Key takeaways
- AI use in employment decisions creates a new avenue of exposure for traditional EPL claims alongside state laws governing AI in the workplace.
- While the EEOC’s “New Enforcement Plan” makes notable changes to its enforcement priorities, federal and state laws remain intact.
- Nuclear verdicts and the increase in the value of EPL claims over the past several years are putting pressure on the EPL market.
- Expanding statutory protections at the state level provides broader protection for employees and are often the driver of EPL claims.
Competition and capacity remain strong in the EPL market, keeping rates at flat to +5%. However, some carriers have been applying more significant increases as claim frequency and severity increase. Looking ahead, the EPL market will see more steady increases across the board with more significant increases in high-risk jurisdictions and industries.
- Limits: As the claims environment becomes increasingly more challenging, carriers are managing their limits on any given risk. Capacity remains stable to obtain excess limits to fill in those gaps.
- Coverage: Despite emerging exposures, like AI, coverage remains intact.
- Underwriting focus areas: Primary focus continues to be headcount, industry and location. Underwriters are also focusing on AI usage in the workplace, company approach to DEI, managing EPL exposure amidst new EEOC enforcement priorities and compliance with state pay transparency laws.
Disclaimer
WTW hopes you found the general information provided here informative and helpful. The information contained herein is not intended to constitute legal or other professional advice and should not be relied upon in lieu of consultation with your own legal advisors. In the event you would like more information regarding your insurance coverage, please do not hesitate to reach out to us. In North America, WTW offers insurance products through licensed entities, including Willis Towers Watson Northeast, Inc. (in the United States) and Willis Canada Inc. (in Canada).
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