Valuing EPLI Risk Management Services
At a recent industry webinar, we polled insurance agents to learn about how they evaluate Employment Practices Liability Insurance (EPLI) coverage for their customers. The agents were well aware of the need for insurance protection from employee lawsuits, but we wondered if they considered Risk Management services in their thinking and presentations. Most EPLI policies come with a free Legal Hotline and/or Loss Prevention Website. How do agents value those benefits for their small business customers?
This is what the agents told us:
- 71% place “substantial value” on Risk Management services
- 28% place “some value” on Risk Management services
- 1% place “little to no value” on the Risk Management services
It’s gratifying that 99% of the agents see value in EPLI Risk Management services for their customers. These benefits are a cornerstone of our EPLI product package for insurers. The bigger question is whether that value causes agents to recommend an EPLI policy.
An agent’s decision might be helped by a few more numbers. What about quantifying the value of the free services? Most Loss Prevention websites charge several hundred dollars for a year of usage. The average hourly fee for an experienced employment attorney, which the insured accesses through our Hotline, is in the range of $250-$300. Buying Risk Management services in the marketplace could easily cost a business owner more than $1,000, so how does that savings compare to the EPLI premium? For many business owners, the value of the free services might well exceed the cost of the policy.
So when agents and business owners are considering an EPLI premium quote, you should first make sure that a Loss Prevention Website and Legal Hotline are part of the package. Check out the providers to confirm the quality of the services. And don’t forget to factor their value into the EPLI buying decision.