Top 5 Reasons Employment Practices Liability Insurance (EPLI) premiums are expensive in California

Sexual harassment, discrimination, and wrongful termination - these are some scenarios covered by an EPLI policy. With the recent #MeToo movement and global pandemic, rates for coverage have skyrocketed. In California, rates are higher than ever. Here's why -

Litigation Culture – there’s an expectation that cases will settle for more in California (ie, greedy lawyers)
Higher salaries – generally, CA has higher salaries than other states (the higher the salary, the higher the claim)
California Laws and regulations – they favor workers over employers
Claims History – there’s been a significant uptick in claims over the past 4 years (#metoo movement, for example)
Less Insurers – as more claims are being paid out, less insurers are offering coverage, putting the few at capacity

I go in depth on the EPLI environment in California at the link below. Check it out and feel free to call, text, or email us with questions.

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