Insurance companies that sell employment practice liability insurance now want higher deductibles and are reducing coverage for businesses deemed to be high risk, including entertainment. These insurers also are requiring information on the sexual harassment policies, confidential settlements and employee hotlines of risky firms.
“Insurance companies have cut back on their willingness to take chances,” says Richard S. Betterley, an insurance consultant. In 2018, “the insurance companies were saying ‘We’ll keep an eye on it.’ Well, [in 2019], there [was] a whole new level of caution.”