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AI tools and broader disability rules are reshaping the EPL market
Insurance Business TV says the EPL market is seeing higher claim frequency and more severe outcomes over the past 18 months to 2 years, alongside an increase in pre-litigation demand letters.
Insurance Business TV interviewed James Walsh, president of eRisk, a Nationwide company, on what is driving changes in the employment practices liability, or EPL, market and why wholesale brokers need to focus more on it.
Walsh said the types of incidents covered by EPL, including discrimination, wage and hour disputes, harassment, and wrongful termination claims, have largely remained constant, but reported instances have become more frequent and the surrounding environment has increased severity over the past 18 months to 2 years.
He pointed to a broader legal definition of disability under the Americans with Disabilities Act, which now requires accommodations for both physical and mental disabilities, and he said that shift is contributing to more EPL risk.
Walsh also cited a rise in pre-litigation demand letters that let claimants test potential cases while keeping matters private, plus increased use of AI tools by pro se or unrepresented claimants to draft and submit EPL claims and disputes.