Watch out for these employment practices liability risks

How is this affecting employment practices liability? Does less in-person engagement translate to fewer claims? And what trends should employers be watching for the future? The latest issue of Insurance Speak addresses several of these topics with Chris Williams, employment practices liability product manager at Travelers. He handles underwriting strategy, marketing, training and consulting on complex EPL accounts.

Williams says there have been four issues affecting employment practices liability: the coronavirus, social inflation, a rise in biometric claims and an increase in sexual harassment claims.

The coronavirus has impacted employers in several ways, particularly as they adjusted to having employees work remotely and had to make difficult decisions regarding layoffs. “Unemployment went from 3 1/2% in March 2020 to 14 1/2% in April 2020,” he explained. When unemployment numbers rise, so too do the number of employment liability claims.

With more employees working remotely, Williams warned that it could become harder for employers to track hours for non-exempt workers. In addition, with so many schools closed and parents adding teaching to their daily schedules, it is difficult for employees to do more than one activity at a time. He says that accommodations for employees will continue to be an issue on several fronts as they juggle various responsibilities with their work commitments.

An interesting area where there could be liability issues for employers involves “zoom etiquette” or how employees (or family members) behave while on camera. He stressed that virtual meetings carry the same responsibilities as being in person — namely looking and acting professionally and being appropriately attired (this also includes anyone moving in the background of a camera shot). Some employees have become a little too casual with their appearance or behavior on camera, and this could create liability for employers.

For more on this discussion, listen to the podcast above or subscribe to Insurance Speak on Spotify, Apple Music, Google Play or Libsyn.

Editor’s Note: This article is part of a multi-part series for ALM’s Small Business Guidance program, providing insights and information for small and medium-sized companies.

Related:

• Going back to work: What your HR department should know
• Back to normal: The workplace in a post-COVID world