With many high-profile cases making the news and a rise in workplace sexual harassment complaints, many industries are starting to feel the pinch from insurers. Many businesses have found their way onto insurance industry blacklists due to the increase in said complaints.
The increased vigilance is a result of increasing costs to cover EPLI claims. In a recent survey of 32 insurance companies, 10 have reported an increase of their blacklist. Eight of them are no longer underwriting the legal industry. These include investment firms, banks and venture capitalist firms. Seven no longer will write the entertainment industry in the wake of cases like Harvey Weinstein. This does not mean these industries cannot get coverage from anyone in the industry, it just means that they now have to consent to higher premiums for Employment Practices Liability Insurance and confirm that they have taken the appropriate steps to handle said claims including establishing hotlines to report the abuse.
As Metoo continues to impact businesses, companies should take the time to review their EPLI and employee handbook. If there are any signs of harassment, an employee should not feel scared to report it to anyone.