Employment Practices Liability Rates

Even with all of the change and disruption, employment practices liability insurance market experts say the market is competitive and poised for moderation in rates throughout 2022.

For employment practices liability insurance, some buyers — those without poor claims history or major changes in exposure due to acquisitions or layoffs — have been able to renew their programs with single-digit increases. That’s the good news.

“In 2021, we continued to see premium and retention increases for Employment Practices Liability (EPL) insurance in the range of 10% to 25%,” wrote Emily Loupee, area senior vice president for Gallagher, in a January 2022 report on market conditions. “Early signs are showing that we may have reached an inflection point in this trend and that we can expect a flat to 10% increase for EPL renewals in 2022.”

According to Joni Mason, senior vice president, National Executive & Professional Risk Solutions claims practice leader at USI Insurance Services based in New York, New York, most EPL accounts will see moderate rate increases between 5% to 20% in 2022 unless there is a claims history on the account.