Car Insurance

Although EPLI is generally thought of in terms of limited liability companies and corporations, a sole proprietor can be a candidate as well. Overall, the EPLI market is in a level pricing mode with fewer markets, more selective underwriting, and markets unwilling to “give” away enhancements.

Rich Robin, executive vice president at NAS Insurance Services, states that throughout the 1990s EPLI was considered the sexiest coverage, creating the greatest opportunity for new premium. As a universal exposure, EPLI applied to any employer. On the other hand, all who were in the market through that period learned that EPLI was-and it still is-a volatile coverage with high frequency and severity of claims.

By the beginning of 2002, according to Robin, rate increases became standard and well understood. Most carriers tightened their wording to give them more control in handling claims, including adding full or partial hammer clauses and eliminating the ability for insureds to select defense counsel. The number of available markets decreased significantly during this period.

Robin says that the current marketplace has seen very few new entrants. Markets that are presently underwriting coverage are the same ones that weathered the soft market. EPLI underwriters have tinkered with rate, form and distribution in order to better focus on underwriting profit.