Employment Practices Liability Insurance


The Betterley Report: Employment Practices Liability Insurance Market Survey 2017

2017 Report Highlights


insurers analyzed


pages of charts

Market Information Based on 4 Categories:

  • Targeted Insureds by Size
  • Targeted Insureds by Industry
  • Prohibited Insureds
  • Prohibited States
Updates inside the full report include the following:
  • 91 pages with 21 different kinds of charts comparing 32 of the most prominent insurers writing employment practices liability insurance
  • An update on rate trends, broken down by insurer premium volume and market focus
  • A special section highlighting insurer’s statements regarding possible responses to increasing sexual harassment allegations
  • The addition of 2 new insurers to the comparison charts
  • Added comparisons of insurers’ definitions of sexual/gender identity, retaliation, whistleblower, and immigration offences
  • A look at certain constraints on market growth
  • A breakdown of direct written premium by 2-digit NAICS code (for the industry as a whole)
  • Forecasted 2018 growth for several middle-market segments
  • An analysis of 2 “problem areas” for EPLI claims, including how various insurers are responding
  • An estimate of total capacity in the market
  • A look at how insurers are addressing punitive damages coverage, wage and hour coverage, third-party liability, and workplace violence coverage
  • An update on insurer willingness to allow insureds to select or approve counsel

Why The Betterley Report?

Agents and Brokers—Sell more and grow revenue by pinpointing errors in competitors’ policies/proposals.
Risk Managers and Insurance Buyers—Identify, eliminate, or avoid coverage gaps with coverage comparison charts.
Underwriters—Research competitors with quick policy comparisons.
Attorneys—Keep up with year-to-year trends in policy form development.
Consultants—Identify markets and match them up to your clients' needs.

Imagine that you or your client is faced with a lawsuit alleging patterns of discrimination or harassment within its company practices. Even worse, all of the evidence seems to suggest that employees have been fired in retaliation for trying to bring these issues to light. Along with the reputational damage that the headlines bring, costs begin to rack up in the form of defense expenses and, eventually, costly settlements.

  • "What are the best insurance products available to protect against this circumstance?"
  • "How can financial losses be minimized?"
  • "How could my company (or my client) have been better prepared for this liability?"

Depending on whether you are the risk manager, the agent or broker, the consultant, or any other role, these are likely the questions you are asking yourself. Big or small, employers in every industry are faced with the types of employment practices liability exposures (among others) alluded to in the scenario above.

The "Employment Practices Liability Insurance Market Survey" edition of The Betterley Report compares and contrasts the options available in the insurance marketplace to address scenarios like this and sheds light on the specific knowledge that can help any risk management and insurance professional better address employment practices liability exposures.

Following a general overview of the state of the employment practices liability insurance market, the report dives into the trademark feature offered in each edition of The Betterley Report: Incomparably detailed charts comparing the leading employment practices liability insurers. These comparison charts allow readers to see how each of the insurers stacks up with the others in terms of the following.

21 types of insurer comparison charts available in full report:

These comparison charts allow readers to see how each of the insurers stacks up with the others in terms of:

  • Contact and Product Information
  • Market Information
  • Limits, Deductibles, Coinsurance, and Commissions
  • Limits Usually Purchased by Carrier’s Insureds
  • Special Coverages Available and Cost
  • Third-party (non-employment) Coverage Available and Cost
  • Joint Employer Coverage Details
  • Policy Type, Who Is Insured, Definition of Claim
  • Definition of Coverage (discrimination, harassment, wrongful termination, retaliation)
  • Definition of Coverage (sexual identity, gender identity, immigration offenses, whistleblower offenses)
  • Claims Reporting, Extended Reporting Period, Selection of Counsel, Consent to Settle
  • Prior Acts
  • Coverage Territory
  • Exclusions (accommodation expenses, assault & battery, back pay, bodily injury)
  • Exclusions (breach of employment contract; oral, breach of employment contract; written, breach of employment contract; implied, change in operations/reduction in workforce)
  • Exclusions (change in operations/facility closure, class action suits, consequential loss, front pay)
  • Exclusions (intentional acts, personal injury, punitive damages, prior acts, retaliatory acts)
  • Risk Management Services Included in the Policy at No Extra Cost
  • Risk Management Services—Consultation Services
  • Risk Management Services—Training and Education
  • Risk Management Services—Outreach

Sample Market Information from Full Report

Below is a small sample of the information that is available for each of the insurers via the 21 different types of charts included in the full report.

Market Information
Carrier Target Markets and Number of Employees Target Markets Industry Prohibited Insureds Prohibited States
Devon Park Specialty No Private companies with 201 up to 1,500 employees. Nonprofit organizations with 201 up to 1,500 employees or over $15 million revenue Adult Entertainment, Aviation, Bars/Taverns, Casinos, Coal Mines, Colleges/ Universities, Entertainment Industry, Government Agencies, Hospitals, Stockbrokers, Unions, Venture Capital Firms, Massage Services Louisiana
West Virginia
Third-party (non-employment) Coverage Available and Cost
Carrier Discrimination Harassment Is Coverage Limited to Sexual Harassment? Is Discrimination and/or Harassment Coverage Limited to Business Relationships or Similar Wording?
USLI Yes, via endorsement Yes, via endorsement No Acts committed by an Insured in their capacity as such while the Insured is performing duties related to the conduct of the Organization’s business
Definition of Coverage 2
Carrier Sexual Identity Definition Gender Identity Definition Immigration Offences Definition Whistleblower Offenses Definition
The Hartford Orientation or preference Identity, makeup, or refusal of testing Defense Costs resulting from any Immigration Wrongful Act (investigation or violation of IRCA or similar federal and state law) Any whistleblower claim under FCA, SOX or similar

Your Objective Source: A Renowned Industry Expert

rick_betterley_186x175Richard S. Betterley, LIA, is the president of Betterley Risk Consultants (BRC), an independent insurance and alternative risk management consulting firm. BRC, founded in 1932, provides independent advice and counsel on insurable risk, coverage, alternatives to traditional insurance, and related services to corporations, educational institutions, and other organizations throughout the United States. It does not sell insurance or related services.

Mr. Betterley is a frequent speaker, author, and expert witness on specialty insurance products and related services. He is a member of the Professional Liability Underwriting Society. Mr. Betterley began his role with the firm in 1975.

Mr. Betterley created The Betterley Report in 1994 to be the objective source of information about specialty insurance products. Now published six times annually, The Betterley Report is known for its in-depth coverage of management liability, cyber-risk, technology, intellectual property, and media insurance products.

More recently, Mr. Betterley created The Betterley Report Blog on Specialty Insurance Products, which offers readers updates on and insight into insurance products such as those covered in The Betterley Report. It provides him with a platform to more frequently and informally comment on product updates and newly announced products, as well as trends in the specialty insurance industry.

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The Betterley Report is distributed by International Risk Management Institute, Inc. (IRMI) and may be accessed by subscribers on IRMI Online. To purchase a subscription, call IRMI Client Services at (800) 827–4242 or learn more on IRMI.com.

Betterley Risk Consultants is an independent insurance and alternative risk management consulting firm. Founded in 1932, it provides independent advice and counsel to corporations, educational institutions, and other organizations throughout the United States. It does not sell insurance nor provide insurance-related services.

Betterley Risk Consultants, Inc.
235 Forest Lake Rd. • Friendship, Maine 04547 
Phone (774) 262–3460
e-mail: [email protected]

The editor has attempted to ensure that the information in each issue is accurate at the time it was obtained. Opinions on insurance, financial, legal, and regulatory matters are those of the editor and others; professional counsel should be consulted before any action or decision based on this matter is taken. Note: all product names referred to herein are the properties of their respective owners.

The Betterley Report is published six times yearly by Betterley Risk Consultants, Inc. This material is copyrighted, with all rights reserved. ISSN 1089–0513

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