Insurers anticipate Covid-19 liability as employees return to workplaces
Cover is being scaled back as companies expect discrimination claims as employers begin calling staff back to their offices following 18 months of home working
Liability insurers across North America are reportedly scaling back cover offered to companies as employers move to return employees to the workplace, according to Reuters reporting.
According to law firm Fisher Phillips, there are around 2,950 Covid-related employment lawsuits in the US, including disputes over remote working, workplace safety, and discrimination, and companies have begun triggering policies to protect themselves against the cost of defending discrimination lawsuit and compensation awards.
Adrian Cox, Chief Executive of Beazley, a Lloyd’s of London insurer, commented: “How you don’t discriminate, how you deal with vaccination and testing – those are all difficult things for employers to work through.”
Mandatory vaccinations prompts controversy
In the US, large technology firms including Google and Facebook have made Covid vaccinations mandatory before returning to offices, a move which other companies are starting to follow.
This policy risks discriminating against workers who are unable to be vaccinated for medical, religious, or age reasons. Similarly, vulnerable workers could sue employers which do not mandate vaccinations for putting them at risk.
According to AmTrust Exec, US, insurers are cutting their exposure by adding restrictions on new or renewed policies, increasing policy rates, and requiring employers to bear more of the costs. These include Lloyd’s of London.
Jason Binette, Product Manager at Amtrust, commented: “I’m seeing companies that have been around for 40 years that haven’t had coverage – and now want it.”
However, Julia Graham, CEO of Airmic, UK, claimed the price was becoming too high to risk bringing staff back to offices, stating: “They can’t get [insurance] at the price they are willing to pay.”
Covid continues to dominate the global landscape. In India, patients are being forced to choose private healthcare as the pandemic persists.