Engage PEO Named 2018 Fast 50 Honoree by the South Florida Business Journal

(MENAFN Editorial) Fort Lauderdale, FL, USA — Engage PEO, a professional employer organization providing HR outsourcing solutions to small and mid-sized businesses across the U.S., was recently honored as one of South Florida Business Journal’s 2018 Fast 50, recognizing the region’s 50 fastest-growing private companies. The official award ceremony and celebration will take place on Thursday, August 16 in Miami.

Companies recognized with this honor have demonstrated significant growth in the past three years. The Fast 50 is a compilation of two Top 25 lists: one for companies with more than $25 million in annual revenue, and one for companies with less than $25 million in annual revenue.

“Joining the ranks of the South Florida Business Journal’s Fast 50 is a clear indication of our unparalleled industry growth and expertise, which translates to strong client relationships and sustained business growth,” said Jay Starkman, CEO of Engage PEO. “We are proud to be listed amongst the fastest growing businesses in South Florida, and will continue to provide personalized human resource and compliance solutions so our clients can then focus on what truly matters: thriving.”

Engage was also named one of the fastest-growing private companies in the U.S. on Inc. magazine’s Inc. 5000 list in 2016 and 2017; over the course of the last four years, no PEO has grown faster. Additionally, Engage recently received another distinction from the Internal Revenue Service that recognizes the company as one of the first professional employer organizations in the U.S. to earn “Certified Professional Employer Organization” status. This new designation ensures greater benefits for small and mid-sized businesses, such as tax advantages and financial protections.

About Engage PEO
Engage PEO delivers comprehensive HR solutions to small and mid-sized businesses nationwide, sharpening their competitive advantage. Comprised of the industry’s most respected veteran professional employer organization executives, certified HR professionals and attorneys, Engage PEO provides hands-on, expert HR services and counsel to help clients minimize cost and maximize efficiency for stronger business performance. The company’s superior service offering includes a full range of health and workers’ compensation insurance products, payroll technology and tax administration, risk management services and advanced technology as part of an extensive suite of HR services. Engage PEO was recently awarded the designation of Certified Professional Employer Organization (CPEO) by the Internal Revenue Service (IRS), ensuring greater benefits for small and mid-sized businesses such as tax advantages and financial protections. Engage PEO is also accredited by the Employer Services Assurance Corporation. In 2016 and 2017, Engage PEO was named to Inc. magazine’s list of the 5000 fastest growing companies. For more information on Engage PEO visit http://www.engagepeo.com.

The IRS does not endorse any particular certified professional employer organization. For more information on certified professional employer organizations go to http://www.IRS.gov.

Contact Information

 

  • Name: Sloane FistelCompany: rbb Communications for Engage PEO
  • Telephone: 305-249-1171

Website: 

Is Your Co-Employed Policy Being Evidenced Properly on your Acord 25 Certificate of Liability Insurance (COI)?

PEO COI 101

A Professional Employer Organization (PEO) can secure workers’ compensation coverage for their client companies a number of different ways.  The structure and naming conventions used on each policy are often set by the state in which coverage is afforded.  The NCCI classes these policy types with an Policy Type Code of 1-8.  The attributes of each policy type dictates how coverage for that policy should be evidenced on an Acord 25 Certificate of Liability Insurance (COI).  Not surprisingly, however, many agencies servicing PEO clients, who have limited knowledge of the complex and varying PEO policy structures used to properly insure co-employed employees, often evidence coverage improperly on COIs.

Below is a brief tutorial outlining the 5 most common PEO policy types to help you make sure your COIs are being generated properly.

Common PEO Policy Types:

  1. Master Policy
    1. 1st Named insured is PEO
    2. Policy includes the applicable blanket Alternate Employer Endorsement(s) as required by each state, extending coverage to the client companies of the PEO
    3. Co-employment exists
    4. NCCI Policy Type 8
  2. Multiple Coordinated Policy (MCP)
    1. Naming convention is established by the State(s) where coverage is provided and typically includes both the PEO and Client Company as the 1st named insured
      1. i.e. “PEO Name L/C/F Client Name”
      2. i.e. “PEO Name for workers leased to Client Name”
    2. No alternate employer endorsement is needed as both the PEO and the Client are named as insureds on the policy
    3. Co-employment exists
    4. NCCI Policy Type 4
  3. Client Direct Purchase
    1. 1st Named insured is the Client Company
    2. Policy includes an alternate employer endorsement naming the PEO
    3. Co-employment exists; coverage is also extended to non-leased employees
    4. NCCI Policy Type Code 7
  4. Mini-Master Policy
    1. 1st Named insured is PEO
    2. Policy includes an alternate employer endorsement naming only one client company and its affiliated entities
    3. Co-employment exists
    4. NCCI Policy Type Code 5
  5. Alternate Services Offering (ASO)
    1. 1st Named insured is the Client Company
    2. Policy does not include an alternate employer endorsement and the PEO is not named on the policy
    3. NO co-employment exists
    4. NCCI Policy Type Code 1

 

Proper COI Structure by PEO Policy Type:

Policy Type Insured Section of COI Description of Operations (DOO) section of COI Notes
Master Name of PEO as listed on the Policy Dec Page Client Company being evidenced and effective date when coverage was extended to that Client Company is stated here DOO should include a disclaimer stating coverage is extended to leased employees except in monopolistic states and any other coverage details pertinent to evidenced policy
MCP Name of PEO and Client Company as listed on the Policy Dec Page Client Company being evidenced and effective date when coverage was extended to that Client Company is stated here DOO should include a disclaimer stating coverage is extended to leased employees except in monopolistic states and any other coverage details pertinent to evidenced policy
Client Direct Name of Client Company as listed on the Policy Dec Page PEO is listed as alternate employer DOO should include a disclaimer stating coverage is extended to leased and non-leased employees except in monopolistic states and any other coverage details pertinent to evidenced policy
Mini-Master Name of PEO as listed on the Policy Dec Page Client Company being evidenced and effective date when coverage was extended to that Client Company is stated here DOO should include a disclaimer stating coverage is extended to leased employees except in monopolistic states and any other coverage details pertinent to evidenced policy
ASO Name of Client Company as listed on the Policy Dec Page Nothing specific to co-employment is needed Nothing specific to co-employment is needed

Speak to an experienced PEO agent to learn more.

Greetings from the NCCI Annual Issues Symposium (AIS)

The National Council this morning gave its annual update on the state of the workers’ compensation line.  As always, Chief Actuary Kathy Antonello did an awesome job of updating the most senior workers’ comp professionals across the globe on all of the relevant economic performance indicators that help us to understand this line of insurance.

The full report can be found off the NCCI website…

https://www.ncci.com/Articles/Pages/II_NewsFromAIS.aspx

…as well as other conference highlights.  Some key points to me from the report:

  • The expected combined ratio for this year is the lowest in almost half a century at an 89.  This is 5 points lower then last year’s 94.  This indicates an operating margin of 11 points on average.
  • The investment income gain went from 10.4% to 12% this year, effectively providing an overall return to workers’ compensation insurers of 23%
  • The overall market volume dropped from $45.6b to $45b in premiums, mostly due to rate drops countrywide.
  • The top five class codes (hardest to place) in the residual market are:
    • Carpentry 5645
    • Roofing 5551
    • Local Trucking 7228
    • Painting 5474
    • Long Haul Trucking 7229

I’d expect a lot of capital support for the line due to these results.

Always a great event and wonderful to catch up with so many friends –

Travelers Group the Largest Writer of Workers’ Compensation in 2017

As a former Liberty Mutual guy, it shocks me they have dropped to 7’th.  For years and years they were #1 on this front…
Amtrust continues to ascend and now at #4 with almost $3B written…
6 of the 25 are competitive state funds with New York at #8 the largest — California (SCIF) now being #13 with the largest overall workers’ compensation premiums speaks to the competitiveness of the overall market…
Lowest overall loss ratio was SAIF (Oregon State Fund) at an incredible 39.44% against the average of 56.9% and the high of 89.14% (AIG)…
Very interesting to see the diverse range of DCC (ALAE) charges… some companies are double digits, while others under 1% to the overall loss ratio…
I’m guessing that the NCCI will be announcing another profitable year for workers’ compensation in Orlando this week during the “State of the Line”…
See you there!
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Senator Nelson Fundraiser Held On Campus at Libertate Insurance

One of the best things about working out of a non-traditional office is the opportunity to house really cool events.  The recent NAPEO fundraiser for Senator Nelson did not disappoint!

On Friday, April 20th, Libertate was fortunate enough to participate in this fabulous event that raised money for Senator Nelson who has been a long-time supporter of PEO initiatives such as the Small Business Efficiency Act (SBEA).  Additionally, he helped educate his fellow legislators on how to address PEOs and the Affordable Care Act (ACA).  Thanks to Senator Nelson, NAPEO and to all of those that participated.

GEX Management And LL Roberts Group To Open Joint Sales & Service Center In Northwest Arkansas

Nothing makes me prouder than to see two of Libertate’s clients partnering together to grow the PEO model in my home state of Arkansas.  Congrats, best of luck and Whoo Pig Sooie!!!

———————

DALLASMay 2, 2018 /PRNewswire/ — GEX Management, Inc. (OTCQB: GXXM), announced that it has reached agreement in principle with LL Roberts Group, a Dallas, Texas-based Professional Employer Organization (PEO), to jointly open and operate a PEO Sales & Service Center in Northwest Arkansas. The center will offer and service a variety of employee administration needs for small and mid-sized businesses. These services will include professional payroll and employment tax administration, workers’ compensation coverage without deposits or year-end audits, a 401(k) plan with no client maintenance fees, group medical, dental, and vision plans, innovative benefits such as Teladoc, as well as Human Resources and Risk Management consultative support.

 GEX Management’s Founder and CEO, Mr. Carl Dorvil, stated, “PEO services are a tremendous resource that can only have a positive impact on the robust economy and rapid growth of Northwest Arkansas.” LL Roberts Group President and CEO, Mr. LJ Roberts, added “We are proud to join GEX Management in introducing high-quality employee administration solutions to businesses across Northwest Arkansas. 

Launch of this Northwest Arkansas PEO Sales & Service Center is slated for May or early June of 2018.

About GEX Management
GEX Management, Inc. is a licensed Professional Employer Organization (PEO) and a Professional Services Company providing comprehensive back office services to clients including HR, Payroll, Risk & Compliance, and Executive Consulting, and provides progressive and complete solutions for employee management and operational needs. http: www.gexmanagement.com

Information on Forward Looking Statements
The statements contained herein that are not historical facts are forward-looking statements within the meaning of the federal securities laws (Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934). You can identify such forward-looking statements by the words “expects,” “intends,” “plans,” “projects,” “believes,” “estimates,” “likely,” “possibly,” “probably,” “goal,” “opportunity,” “objective,” “target,” “assume,” “outlook,” “guidance,” “predicts,” “appears,” “indicator” and similar expressions. Forward-looking statements involve a number of risks and uncertainties. In the normal course of business, GEX Management, Inc., in an effort to help keep our stockholders and the public informed about our operations, may from time to time issue such forward-looking statements, either orally or in writing. Generally, these statements relate to business plans or strategies, projected or anticipated benefits or other consequences of such plans or strategies, or projections involving anticipated revenues, earnings, profits, pricing, operating expenses or other aspects of operating results. We base the forward-looking statements on our expectations, estimates, and projections at the time such statements are made. These statements are not guarantees of future performance and involve risks and uncertainties that we cannot predict. In addition, we have based many of these forward-looking statements on assumptions about future events that may prove to be inaccurate. The actual results of the future events described in such forward-looking statements could differ materially from those stated in such forward-looking statements.

Milliman’s gradient A.I. platform brings first A.I. predictive analytics solution to the professional employer organization (PEO) market

Huge news announced today by Milliman in the world of artificial intelligence (see below press release).  Milliman’s gradient A.I. is the first solution of its kind to be applied to PEO underwriting and claims management.  We at Libertate have been working with Milliman on this project for the past 18 months as we always felt there weren’t enough tools in the marketplace to help our clients price and evaluate risk.  Let’s discuss in more detail this week in Houston at NAPEO’s Risk Management conference!  Call me for more details at 305.495.5173.

_____________________________________

SEATTLE – MARCH 19, 2018 – Milliman, Inc., a leading global provider of actuarial, risk management, and technology solutions, today announced that gradient A.I., a Milliman predictive analytics platform, now offers a professional employer organization (PEO)-specific solution for managing workers’ compensation risk. gradient A.I. is an advanced analytics and A.I. platform that uncovers hidden patterns in big data to deliver a daily decision support system (DSS) for insurers, self-insurers, and PEOs. It’s the first solution of its kind to be applied to PEO underwriting and claims management.

“Obtaining workers’ compensation insurance capacity has been historically difficult because of the lack of credible data to understand a PEO’s expected loss outcomes. Additionally, there were no formal pricing tools specific to the PEO community for use with any level of credibility – until gradient A.I. Pricing within a loss sensitive environment can now be done with the science of Milliman combined with the instinct and intuition of the PEO,” says Paul Hughes, CEO of Libertate/RiskMD, an insurance agency/data analytics firm that specializes in providing coverage and consulting services to PEOs. “Within a policy term we can understand things like claims frequency and profitability, and we can get very good real-time month-to-month directional insight, in terms of here’s what you should have expected, here’s what happened, and as a result did we win or lose?”

gradient A.I., a transformational insurtech solution, aggregates client data from multiple sources, deposits it into a data warehouse, and normalizes the data in comprehensive data silos. “The uniqueness for PEOs and their service providers – and the power of gradient A.I. – emerges from the application of machine-learning capabilities on the PEOs data normalization,” says Stan Smith, a predictive analytics consultant and Milliman’s gradient A.I. practice leader. “With the gradient A.I. data warehouse, companies can reduce time, costs, and resources.”

To learn more, go to https://www.gradientai.com/. For more on how gradient A.I. and Libertate brought predictive analytics solutions to PEOs, go to http://www.milliman.com/gradient-AI-Libertate-case-study/.

About Milliman

Milliman is among the world’s largest providers of actuarial, risk management and technology solutions. Our consulting and advanced analytics capabilities encompass healthcare, property & casualty insurance, life insurance and financial services, and employee benefits. Founded in 1947, Milliman is an independent firm with offices in major cities around the globe. For further information, visit milliman.com.

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EPLI Claims Reach Tipping Point Amid Anti-Sexual Harassment Movement

It would only be logical that based on the recent #meToo movement that frequency in sexual harassment events has and will increase.  The impact to carriers and on future premiums is yet to be understood, but would be expected to be material –

All the more reason to have a Professional Employer as your partner!

by Andrea Wells of MyNewMarkets.com

From Hollywood mogul Harvey Weinstein to famed television journalist Matt Lauer, to thousands of others speaking out through the social media movement #MeToo, sexual harassment allegations from individuals who claim to have been victimized by their employers and colleagues continue to surface.

The insurance industry is expecting a wave of employment practices liability insurance (EPLI) claims to roll in following the recent storm of sexual harassment allegations in entertainment, media, hospitality and other industries.

The current period represents a tipping point, according to Patrick Mitchell, management liability product head at Hiscox.

“In the past, employees feared retaliation and may not have reported harassment,” he said. Recent attention is likely to ease those fears. “So while retaliation is definitely possible, it appears now employees have the courage to report regardless of the consequences.”

Insurance experts say no industry or company is immune. While the initial wave of EPLI claims is likely to target high profile and large companies, there is the potential for a trickle-down effect on other industries, experts say.

“We’ve seen a lot of headlines for particular industries (entertainment/media), but the truth is, sexual harassment allegations can happen in any industry and in companies of all sizes,” Mitchell said.

“I think we’re seeing the tip of the iceberg,” agrees Jared Zola, a partner and insurance recovery expert at the law firm Blank Rome. While today it’s high-profile alleged bad actors being targeted who are very public figures in politics, media and entertainment, he thinks there will soon be “a flood of claims from employees or former employees at companies in every industry of every size.”

The likelihood of an employer being hit by a discrimination charge of any kind is higher than employers may realize. In 2016, U.S. companies had at least a 10.5 percent chance of having an employment charge filed against them, according to The Hiscox Guide to Employment Lawsuits, which was compiled using the latest data on employment charge activity from the Equal Employment Opportunity Commission (EEOC) and its state counterparts. Employment charges are often the first step toward employment suits. Employment discrimination charges can be based on race, sex, disability, age, national origin, religion, color and others in addition to sexual harassment. Most employers with at least 15 employees are covered by EEOC laws.

EEOC data from 2016 show that retaliation is the most common discrimination charge filed and is named in nearly half of all charges (45.9 percent). However, in many cases, more than one category can be cited in an EEOC discrimination filing.

Watershed Moment

Rick Betterley, president of Betterley Risk Consultants Inc., and author of The Betterley Report, believes this period will be seen as a watershed moment similar to what happened in 1991 when Anita Hill accused Clarence Thomas, President George H.W. Bush’s Supreme Court nominee, of sexual harassment when the two worked together. Betterley sees this moment as a significant turning point not only in U.S. employment, but also in employment-related insurance.

While the recent surge in sexual harassment allegations has not yet translated into claims, it’s most likely only a matter of time before the EPLI claims start arriving. When they do, there is most likely to be coverage for those employers that have purchased EPLI coverage.

“This is not a situation with an insurance company saying, ‘We never planned on covering that.’ They did plan on it. They wrote the policies to cover it. EPLI grew out of the Clarence Thomas hearings and Anita Hill’s testimony. That’s a big part of where this coverage started,” Betterley said.

At the same time, he believes the insurance industry can handle the claims. “It could be a big deal for the line, but I don’t see it as wrecking the line either,” he said.

EPLI has been a mature market for many years, with growth averaging 4.4 percent over the past four years in the United States, according to Betterley’s recently released Employment Practices Liability Insurance Market Survey 2017.

Potential Claims

Betterley foresees most claims activity stemming from the recent storm in sexual harassment allegations targeted at larger and/or prominent employers and suggests they may even be limited to only higher risk industries.

“There are some industries where you would say that the underwriters are already looking more carefully, thanks to the last couple of months, than maybe they would have been before. Entertainment’s one of them,” he said.

Underwriters are also likely to closely watch companies whose leaders have a more visible public profile.

“Let’s say it is an investment banking firm (with a high-profile CEO). … As an underwriter, they’re already paying closer attention to those industries or scenarios … the famous person or the entertainment person, but now they’re paying even closer attention,” Betterley said.

However, the insurance effects will not be restricted to industries being more closely scrutinized by underwriters. The problem of sexual harassment will eventually spill into all industries, according to Betterley, because employees who believe they’ve been harmed are now less likely to remain silent than before the current outpouring.

“If they brought a case against the employer, they perhaps didn’t have a great lawyer, maybe they settled for $25,000, or didn’t really push the allegation at all,” Betterley said. “Now, they’re reading about people getting millions and millions of dollars (in settlements). They’re saying, ‘I’m not going to settle as easily as I might have before.’”

Betterley compares it to what the insurance industry saw in the medical liability market years ago.

“I remember having a client say, ‘Our typical med-mal claim used to be $800,000, but people have been reading about lottery winners and CEOs with tens or hundreds of millions of dollars of compensation.’ All of a sudden, $800,000 is ‘paltry.’ Well, no, it’s not, but if you believe it is, then you won’t settle as quickly,” he said. “I think the same thing will happen with EPLI.”

Coverage

The industry will feel the impact because there’s not much dispute that sexual harassment is covered as a wrongful practice under an EPLI policy.

“The policy provides coverage for a wrongful employment practice, which is a defined term. One of the prongs of what a wrongful employment practice is, is sexual harassment,” Zola said.

The definition of sexual harassment under an EPLI policy can be some “actual or alleged sexual advance that is unwelcomed, that has a purpose of creating an intimidating or hostile work environment,” Zola explained. This can encompass a broad set of circumstances, however, where there’s unwelcomed attention brought on an employee by another individual at the company that creates an uncomfortable work environment. That circumstance is probably enough to trigger coverage, according to Zola.

Joe Kelly, vice president and employment practices liability practice leader at Sompo International, a Bermuda-based global specialty insurer and reinsurer, agrees that there’s no question that sexual harassment is covered under EPLI policies.

“The EPLI contract is very straightforward in covering claims of sexual harassment so there’s no coverage issue,” Kelly said.

However, one issue that could affect the recent wave of sexual harassment allegations is the statute of limitations for coverage to be triggered.

The statute of limitations for filing a discrimination charge with the EEOC is 180 days. The statute does vary by state so it’s possible there’s a window of opportunity to file in a certain state beyond the 180 days, Kelly stated.

Some claimants are choosing to file under RICO (Racketeer Influenced and Corrupt Organizations Act), which does not expressly establish a period of limitations. “We saw this with some of the Weinstein claims and now there’s a group of women bringing a claim under RICO,” he said. “That’s one reason why they might bring charges under RICO.”

Another reason claims might be filed under RICO, according to Kelly, is that damages can be much higher.

Sexual harassment coverage is commonly broad, with no sublimit for sexual harassment, according to Marie-France Gelot, senior vice president of the insurance and claims counsel at Lockton. Coverage under an EPLI policy goes to both employees, and in most policies today, also for third parties including clients, customers and vendors. “It’s not just employees, it’s a vendor of the company, a customer of the company.” Any party – employee, customer, vendor – alleging they are sexually harassed by someone from the insured employer can trigger coverage, she said.

Some policies provide broader coverage than others, so it’s important for employers and their agents and brokers to review all terms and conditions, she said.

For example, many EPLI policies have bodily injury exclusions, but some don’t, notes Gelot. “The bodily injury exclusion in a sexual harassment conversation would draw a very hard line if harassment leads to something like rape,” she said. “But I’ve had cases where you had a rape by an employee that the EPLI insurer has had to cover despite the fact that the company didn’t want the carrier to cover it. The carrier had to cover it because there was no bodily injury exclusion, and the coverage was so broad.”

Another example, according to Zola, is that coverage could possibly be voided if certain individuals in a workplace knew about the alleged harassment.

“The real question is going to be who does the policy identify as being a person whose knowledge is sufficient to exclude coverage,” Zola said. “The language is different on policies, but some typical language is fact, circumstance, situation or event that reasonably would be regarded as a basis for a claim. That language being imprecise, I think, is fertile grounds for factual disputes as to when a company or officers or directors of a company should have known that a claim was likely based on the knowledge they had at the time.”

Zola says this can be seen in the media allegations that some “bad actors” had certain reputations for activities that would be considered sexual harassment. “The question is who at the company knew about that reputation and whether rumor and reputation are sufficient to exclude a claim based on the policy language,” Zola said.

The size of the claim makes a difference when it comes to knowledge-based exclusions, he added.

“The claims that I’ve handled in the past involving sexual harassment allegations, there was no media spotlight on them, and so, there wasn’t this deep-dig by the media and by the public into what people at the company knew or didn’t know about the allegations,” Zola said. Even so, an employer’s knowledge of harassment by an alleged harasser is a defense that the insurance companies will pursue through discovery rather than in the media, he said.

Other lines of insurance, including directors and officers (D&O), could potentially be involved as well.

“The idea with D&O policies is, especially for public companies, if there are widespread allegations, that the directors or officers failed to protect their fiduciary obligations to the shareholders by allowing a culture of impropriety,” Zola said.

When allegations are made, stock prices may drop, which can lead to “very serious derivative suits” that could be covered by D&O insurance.

Zola says general liability could be another line to come into play for allegations of bodily injury in certain states. According to Zola, in states like New York, sexual harassment can rise to a level of emotional distress even without any physical touching. “This is considered bodily injury, as that word is used in a general liability policy. In all states, physical touching that leads to damages is considered bodily injury,” he said. “It depends on the allegations by the claimant, but it could implicate both of those lines as well.”

In Kelly’s view, general liability would have excluded this type of coverage, but the D&O coverage could play a role as it can in cyber.

“We saw this with cyber where there were cyber breaches but then there were follow-on derivative suits brought on behalf of the company against the board of directors for failing to put the proper controls in place to prevent a breach,” said Sompo International’s Kelly. “You could have the exact same type of derivative suit for failing to supervise the CEO of the company who is a known harasser or failing to remove that person if there was a known event that occurred, and the board didn’t act appropriately.”

Time to Review

Lockton’s Gelot said this is a time for employers and agents/brokers to review policy wording carefully.

“You have some policies today that have specific wording meant to narrow the scope of covered sexual harassment – and those policies would drive a clear distinction between behavior that is insurable versus behavior that is so egregious that to insure it would be offensive or outright against public policy,” she said. That might include wording in some policies that the policy will cover “everything except harassment that is deemed licentious or immoral or sexual abuse or exploitation or abuse of child.” Not all policies contain such wording, she said.

EPLI Going Forward

The disturbing recent spate of workplace sexual harassment complaints could have positive effects for the industry and the EPLI market as well, experts say.

“Anytime there’s a major event in any line of insurance, it always raises awareness,” said Kelly. “Major senior level execs and the boards are even being called out on what they are doing (to prevent such behavior) and they are asking what kind of EPLI coverage do we have?”

These executives better make sure that they not only have EPLI coverage, but also that their limits are adequate, Kelly said, noting that this type of questioning is going to drive more demand in the market and potentially higher limits.

In 2016, gross written premium for EPLI was $2.1 billion, according to MarketStance, and it estimates a possible bump to $2.3 billion or more for 2017-2018.

There are many smaller employers that still do not purchase the coverage. Roughly seven out of 10 businesses don’t carry EPLI, according to TrustedChoice.com.

But just how market growth will be affected following the attention on sexual harassment in the workplace remains to be seen, Betterley said. Small commercial accounts, while forecast to grow most rapidly over the next year, have the lowest take-up rates for EPLI coverage, he said.

“I think it (the recent attention) will have an impact,” Betterley said. “I don’t know that I’ve seen it just yet. One impact perhaps is that if you’ve got a potential insured that has not been buying EPLI, now they will want to buy.”

Those employers that haven’t purchased the coverage might get a tougher reception from insurance markets, he added. “The underwriter is going to be really interested in the why now? A good answer, I guess, would be, ‘Have you read the newspaper?’” While insurers may be glad to gain more insureds, they may be more cautious about taking on employers that until now haven’t been buying coverage, he said.

Hiscox’s Mitchell says it’s difficult to predict how EPLI insurers will react to a rise in sexual harassment claims in 2018, but it’s likely to be a mix of changes in premium rates, retentions and restructuring coverage. For now, one thing is certain. “It’s something all insurance companies will be monitoring closely,” he said.