Today’s episode is going to dive deep into the fascinating world of Employment Practices Liability, or EPL.
This $4-5bn premium class of business is one that has grown into a standalone specialist line over the last 25 years and is one whose growth is almost guaranteed to continue into the future.
I say that growth is almost guaranteed because its progress is almost wholly aligned with the parallel progress of society at large.
As society develops and standards and expectations are raised in the workplace, so the consequences of failing to keep up with best practice will become steadily more severe for employers who fall behind.
Legislation changes and over time tends to create new forms of liability for employers.
At the same time unwritten societal norms evolve, almost always faster than the legislation can keep up.
Behaviour that might have been acceptable or even encouraged 30 years ago may today be the cause of new grievances and complaints in the workplace.
Similarly, as technological change accelerates and the way we work and where we work evolves, so new avenues for potential claims are being created at pace.
Also as workforces age and become more diverse, once again the potential for conflicting views on what is and what is not acceptable conduct by colleagues, employees and bosses of differing ages and cultural backgrounds is increased.
To sum up some liabilities are statutory and laid out in black and white, but others are becoming far more subjective; one person’s idea of absolute impartiality may be another’s idea of unjustifiable discrimination. Something many see as harmless teambuilding fun might be harassment when viewed from another perspective.
And because many employers and industry sectors follow very similar HR systems, Employment practices claims are also potentially systemic in nature. This merely adds potential fuel to the fire.
There’s an awful lot going on here and this is clearly not a line of business that the unprepared should be dabbling in.
That’s why I have assembled a trio of experts from underwriting, claims and the legal profession to shed light from all angles on the core questions and key trends affecting this dynamic class.
Bethany Greenwood (pictured top) is Beazley’s Group Head of Specialty Risks and Kamal Chhibber (pictured middle) is its Claims Focus Group Lead for International Financial Lines.
(By the way, Kamal Chhibber is known as Chhibbs by everyone, so this is how he is addressed throughout the podcast)
These two senior insurance practitioners have been professionally assisted by Louise Bloomfield (pictured bottom), a partner at UK law firm DAC Beachcroft.
The intention is that this podcast will be of value to anyone with an interest in this burgeoning casualty line and the fast-evolving cultural and legal territory that it inhabits.
I’ve spoken to the experts, so you absolutely don’t have to be one yourself.
NOTES AND ABBREVIATIONS
ADA = The Americans with Disabilities Act (US)
EEOC = The Equal Employment Opportunity Commission (US)
ACAS = The Advisory, Conciliation and Arbitration Service (UK)
RECOMMENDED FURTHER READING
Beazley has just launched a report entitled Spotlight On Boardroom Risk 2024
It deals with the evolving boardroom risk landscape, from business interruption and supply chain risks to regulations, reputation, and employer risks.