Any time the insurance industry introduces a new product to the market, it takes some time to determine appropriate pricing levels. The premium must be adequate to cover losses and expenses while, at the same time, priced at a level most organizations can afford. The carriers offering EPLI appear to be making coverage affordable and available even for smaller employers. Underwriting Issues Insurers take a careful look at an organization's operations before they agree to provide insurance coverage. An application accepted by one carrier may be rejected by another based upon its view of the organization's operations.
Key issues vary from carrier to carrier.
Application forms are fairly standard among the carriers offering coverage. Most are four pages and ask for historical, financial and organizational information about the applicant, loss history, and human resources operations. The carrier will ask for copies of annual reports, budgets, employee handbooks, applications for employment, organizational charts and other information related to human resources issues. All EPLI carriers will look very carefully at the organization's management and human resources policies and procedures. They will review employment applications, employee handbooks, and employee education and training.