Vaccine Mandates and the Effect on EPLI Coverage

With the Pandemic having lasting effects in the U.S. and all over the world, companies may be wondering what they can do to protect their employees without legal trouble.

What is Going on With the Mandate?

There has been talk about mandating the SARS-CoV-2 vaccine in the U.S. since the vaccine was released to the public in late 2020, but what can really happen?

OSHA is in charge of regulating occupational hazards, but can not regulate broad public health orders. The Biden administration passed a mandate that large private companies must enforce vaccine or test requirements, however; the mandate was only in effect for 3 days before the supreme court decided it was more of a public health regulation. Lower courts are also attempting to use the supreme court’s major decision to stop other COVID-19 mandates the Biden administration has tried to set forth. 

What are Employers Doing?

Although the OSHA led mandate is not in effect, Joe Biden has been urging business owners to implement their own vaccination requirements. The supreme court’s decision  does not affect the ability of private employers putting vaccination requirements in place. In November of 2021 it was reported that the number of employer set mandates doubled since August of 2021. Some businesses are even firing unvaccinated workers to keep a safe working environment for all of their employees. When taking an employer-imposed mandate to the point of disciplining and firing employees for not following, it may increase their employment practices liability (EPL). 

What Can Happen Regarding Employment Practices Liability?

If an employee is fired due to a violation of their employer-imposed mandate, it is then possible for the terminated employee to sue their employer for wrongful termination or even discrimination. Due to the fear surrounded by the possible lawsuits, many companies have ended up getting rid of their mandates. Companies that have stopped a mandate regarding COVID-19, and previously fired an employee over the matter may be at risk for more EPL exposure. 

Employment Practices Claims and Coverage

According to practices liability insurance experts, the ongoing uncertainty over COVID-19 mandates may lead to a rise in retaliation and discrimination claims against employers. Although it has seemed likely that employment practices liability coverage and pricing would go up, there is no evidence of it yet. As employers finish rolling out their policies, it is expected that the rate of claims will climb. If they do begin to climb, it will most likely affect the pricing of coverage, but it is not certain yet.

Is There a Way to Reduce EPL Exposure?

One way a company can reduce EPL exposure is by allowing exemptions in their mandate for religious and medical reasons. It is also important to stay aware of local and state requirements regarding the matter. Some states such as Florida, Texas and Georgia have banned vaccine mandates, while New York City requires all employers to mandate COVID-19 vaccination. It is important to be aware of these requirements/bans in all areas especially if you have employees spread throughout the country. Allowing the option to work from home is also a way to keep the workplace safe and to avoid possible lawsuits. With the pandemic being a fairly new situation to all of us, it is a good idea as an employer to contact an employment practices liability attorney to understand all of the possible risks in their workplace. 

Business Professionals:  What’s in your policy?