Sp Ep: The Fast-Evolving World of Employment Practices Liability

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.