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EPLI offers huge potential Only 2.5% of business operating locations are covered Hardly a day goes by when we don’t hear about a disgruntled employee threatening to sue his or her employer. Allegations of some type of discrimination always seem to draw media attention. And there rarely are follow-ups when the employer is found innocent of any wrongdoing, which happens in the majority of cases. That still means that the employer spent many dollars defending the case. Oftentimes, these are significant. Yet, employment practices liability insurance (EPLI) remains a coverage that is readily available, but seldom purchased. EPLI premiums total more than $1.44 billion and cover nearly 217,000 business locations, according to data compiled by MarketStance, Middletown, Connecticut. However, that leaves more than 8.4 million business locations going bare. What an enormous opportunity for agents, especially in today’s soft market where businesses are enjoying level or declining premiums for other coverages. Adding protection for employment practices may wind up adding very little to a business’s total insurance bill, but it will offer a layer of protection that could be critical. Simply defending against a lawsuit can be quite expensive, even when your client wins. The opportunities run across all classes of business, with various service businesses showing the greatest opportunity. NAICS 541490—other specialized design services—is the leading niche opportunity, thanks to an attractive combination of historical and anticipated employment growth, coupled with low penetration. It is followed by marketing consulting services and investment advice firms. (The score shown gives equal weight to market penetration, historical growth and anticipated growth, with the lower score representing the best opportunities.) MarketStance has information on the 188 leading market niches defined by NAICS. The chart accompanying this article shows the top 50. For information on the remaining niches, e-mail MarketStance at info@marketstance.com or call (888) 777-2587. * |
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