Employment practices liability insurance (EPLI) has come a long way from being a rarely considered option to a necessary protection for businesses of all sizes. Tokio Marine HCC – Cyber and Professional Lines Group (CPLG), based in Houston, Texas, is leading the charge to make EPLI a top priority for franchises and other companies alike.
Chris Murphy, the senior vice president of EPL, and Lauren Wilke, director of underwriting EPL, bring a combined 40 years of experience to the table. Through their work, they have seen how the importance of EPLI has grown. What started as coverage mainly for high-earning professionals like lawyers and doctors is now essential for businesses ranging from small franchises like Jamba Juice to giants such as Facebook and Google.
Murphy points out that smaller businesses might need EPLI even more. Research from ARAG Legal Solutions shows that seven out of ten small businesses have faced at least one legal issue in the past three years, a huge jump from previous years. More than half of those issues hurt the companies financially, and nearly three-quarters say it caused mental stress. For franchise owners, this can cause serious damage both inside the company and in how customers see them. Murphy notes there are two main concerns: the potential for copycat lawsuits that could grow into class actions, and negative publicity on social media platforms like Yelp, especially harmful for restaurants and similar businesses.
The rise of smartphones has only added to the challenge. Wilke explains that employees or customers can easily capture videos of workplace incidents. These clips can go viral, intensifying claims and making the situation more emotional. For employers, a lawsuit often feels personal, especially when they have worked hard to support their staff.
This emotional side can lead to expensive legal battles. CPLG works closely with employers to help them manage these cases carefully, aiming to settle claims quickly and keep businesses focused on their operations.
CPLG stands out with its long history in franchise risk management and a strong support system. They have collaborated for almost two decades with ePlace Solutions and its HR Pilot® tool, which is included with every policy at no extra cost. Unlike some competitors who provide limited access to legal advice, HR Pilot® offers unlimited support for handling everyday workplace issues. This helps prevent problems before they become lawsuits by guiding clients on managing staff and HR matters effectively.
Franchises often face many claims annually, and CPLG is ready for that. When a large client recently submitted 100 claims in a year, CPLG welcomed the chance to deal with them quickly and efficiently, helping to close cases fast.
Wilke highlights the personal relationships CPLG builds with clients. Insureds get to know the HR Pilot® team and claims staff, ensuring open communication during a crisis. This teamwork helps protect businesses better when trouble arises.
Despite increased awareness, legal claims continue to rise, partly fueled by movements like #MeToo. Brokers working with franchise clients need to do more than just offer EPLI; they need to make sure the coverage fits the real risks. Murphy warns that many small franchises only have EPLI as a small part of their business owner’s policy, often with low limits that don’t cover the actual cost of claims today.
His advice to brokers is clear: always ask to see the full EPLI policy and check its limits and included risk management tools. Wilke agrees, emphasizing that comprehensive coverage paired with support like HR Pilot® is no longer a luxury but a must-have in today’s environment.
Together, CPLG’s experience and services provide businesses with the tools to handle workplace claims and reduce the stress and financial impact that come with them. In a world where employment risks are rising, they aim to give franchise owners and others the help they need to stay protected.