QBE North America announced the release of its Employment Practices Liability Report which explores employment-related risks in a rapidly changing workplace environment.
“As hybrid work arrangements, regulations, and technologies like artificial intelligence, continue to evolve, employers must balance workplace progress with protection,” said Mary Anne Mullin, senior vice president, EPL and Fiduciary Product Leader, QBE North America. “Many organizations are adjusting their risk strategies to address new vulnerabilities.”
The report is based on a survey of 200 legal and HR professionals at organizations with annual revenues between $500 million and $5 billion. Key findings include:
- Employment-related claims persist. In the past 12 months, 69% of legal and HR professionals said their organization experienced claims made by employees alleging discrimination, harassment, retaliation, or other employment-related issues. Forty-two percent of respondents expect the frequency of employment-related claims at their organization to increase over the next year.
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- Employment-related claims and litigation are having an impact. Sixty-three percent of respondents believe financial costs are the most significant consequence of employment-related claims and litigation. Other impacts include damage to reputation and brand, and loss of employee morale and productivity.
- Employee education and training can help prevent and mitigate potential claims. Respondents believe employee education and training should be strengthened most in these areas: use of artificial intelligence (AI) for HR purposes (54%), employee data privacy concerns (47%), and workplace harassment and discrimination (47%).
- EPL insurance provides protection for emerging exposures. Among respondents whose companies have EPL insurance, over the next 12 months, 60% plan to adjust deductibles or premiums, 57% intend to update coverage to reflect new legal requirements, and 51% plan to add coverage for specific risks.
“Employers are being tested in new ways as exposures increase,” said Eden Stark, vice president, Financial Lines Claims, QBE North America. “Organizations should review their employment practices and risk management strategies to address new and emerging risks.”
Source: PRNewswire
