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Jonathan Mitchell Founder Shield
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Jonathan’s insurance brokerage experience spans more than a decade. But his living abroad (Austria) motivated him to serve tech clients with a deeper understanding of what they really need. There is no fluff. Jonathan has the answers and access to the newest technology to get it done!

What Is Employment Practices Liability Insurance Rated On?

Asked by: Carola S.

Jonathan Mitchell Founder Shield
Jonathan Mitchell

• number of employees and compensation: the more employees you have, the greater the likelihood of one submitting an employment-related claim. Well-paid employees make claims for larger amounts since damages are often determined using salary as a starting point.
• industry: businesses in industries with relatively high claim frequency (venture capital and tech included) will have higher premiums
• state: certain jurisdictions are especially friendly to employees. An EPLI policy is much more expensive in California than in most other states for this reason.
• internal controls: does the company have an employee handbook and an “at will” employment statement? Is any training provided surrounding sexual harassment, discrimination or workplace conflict? Is there an open-door policy and an HR representative that employees can safely confide in?
• financials: a company that is struggling financially is more likely to engage in risky employment practices.
• and (as always) claims history: a history of litigation raises red flags.

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