Increased Regulatory Oversight Driving Steep EPLI Rate Increases


After several years of soft-market conditions, Employment Practices Liability Insurance (EPLI) is experiencing double-digit rate increases driven in part by claims caused by the recession and lawsuits against directors and officers, which have caused surges in defense costs.

But the regulatory and legal environment may be an even stronger force behind the rate increases, says Bertrand Spunberg, leader of Hiscox USA’s management liability team.

EPLI, usually offered as part of a liability policy bundle, protects employers from certain employee-enacted claims such as workplace harassment, discrimination, and wrongful discharge.  Spunberg says there are two main avenues through which EPLI is currently driving losses. The first is the increasingly active role of the U.S. Equal Employment Opportunity Commission (EEOC).

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