The employment practices liability (EPL) market continues to grow in Australia with all industries targeting the cover, a pair of experts has said.
Speaking to
Insurance Business, Martine Nield, client manager within the professional and financial risk team at
Gallagher, said that the cover is important for all industries and is being widely accepted across the market.
“I would suggest that it is appropriate to all industries and all industries are readily adopting the cover,” Nield said. “This is probably because EPL matters are very easy to envisage and we are all aware of anecdotal scenarios that provide colour to potential claims.”
Though sexual harassment is continuing to make headlines around the world and offers brokers a potential “topical” discussion point, Brett Parnell, account manager at Gallagher, believes it is economic distress which truly drives uptake.
“Downsizing and a surge in redundancies was really the trigger and topical point for employment practices and the handling of those redundancies,” Parnell told
Insurance Business. “Directors and officers and individuals are covered for employment claims under their D&O policies so an employment practices policy extends to include the entity and to give that balance sheet protection.”
For brokers, Nield said that using claims scenarios to discuss when an EPL policy is triggered is important, as is mitigating against employment risks.
“It is important for brokers to advise clients that they can include EPL in their suite of insurance policies, which enables clients to access the expertise of EPL specialist lawyers to mitigate and manage the business risk of employee litigation,” Nield continued.
In addition, Nield noted that the EPL market is in a hardening phase as prices, as well as deductibles, continue to rise.
“The retention is increasing as well,” Nield continued. “Insurers are being very assertive around that, suggesting that it is not profitable, and there is a low margin on employment practices liability so they are looking for uplift in rate and retentions.”
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