Chris Brooks, AVP of Management Liability, Discusses Current Trends in Managing Hospitality Risks under the ML/ EPL Appetite
In our latest blog post, our AVP of Management Liability Chris Brooks discusses the evolving risks and claim trends faced by hospitality businesses—such as restaurants and hotels—in the areas of management and employment practices liability. He also highlights why EPL coverage is critical for these businesses, recent shifts in claim types, and the unique advantages Berkley Select offers its clients.
Q). Can you tell us some of the most common hospitality risks Berkley Select insures?
A). Berkley Select provides management liability for a wide range of businesses within the hospitality sector, including restaurants, hotels, bars, entertainment venues, and retail establishments. These businesses face a unique set of risks due to their high customer interaction, diverse employee base, and operational complexity.
Q). Hospitality is known in the EPL space to carry a higher risk, or liability, exposure. Why is this?
A). The hospitality industry is particularly vulnerable to EPL claims due to its workforce characteristics and operational environment. High employee turnover, seasonal staffing, and a younger, often less experienced workforce contribute to a greater likelihood of disputes. Additionally, the fast-paced, customer-facing nature of hospitality jobs can lead to communication breakdowns and interpersonal conflicts. These factors increase the risk of claims involving harassment, discrimination, wrongful termination, and wage and hour violations, making EPL coverage especially critical for hospitality businesses.
Q). What types of trends are you seeing in hospitality claims post-COVID since there has been a large return to these types of roles?
A). Post-COVID, there has been a noticeable shift in the types of claims emerging from the hospitality sector. As businesses reopened and rehired staff, disputes arose around return-to-work policies, accommodations for health concerns, and compliance with evolving safety protocols. There has also been an increase in claims related to layoffs and rehiring practices, particularly where employees felt they were treated unfairly or inconsistently. Additionally, new state-level employment laws introduced during and after the pandemic have created compliance challenges, leading to a rise in claims tied to leave policies, wage transparency, and workplace flexibility.
Q). What types of EPL claims tend to be the costliest?
A). The most financially burdensome EPL claims typically involve allegations of retaliation, especially when connected to whistleblower complaints or protected activities.
These claims often result in prolonged litigation and significant settlement costs. Sexual harassment and discrimination claims—particularly those based on race, gender, or disability—also tend to be costly due to the emotional distress involved and the potential for reputational damage. Wrongful termination claims can be expensive as well, especially when they involve high-level employees or are accompanied by claims of emotional harm or punitive damages.
Q). Has there been any recent trends or shifts in the kinds of allegations being filed?
A). Yes, there has been a clear shift in the types of allegations being filed in recent years. Retaliation claims have become increasingly common and now rank among the most frequently filed and most expensive EPL claims. There has also been a rise in discrimination claims based on newer protected categories, such as gender identity, caregiver status, and reproductive health decisions. Additionally, wage transparency and equal pay disputes are gaining traction, particularly in states with new legislation on salary disclosures. These trends reflect a broader societal focus on equity, inclusion, and employee rights.
Q). What advantages does Berkley Select EPL have over a competitor?
A). Berkley Select offers several key advantages in the EPL space that distinguish it from competitors. With 33 years of experience in management liability, the company brings deep industry knowledge and a long-standing commitment to excellence. Our in-house claims team provides consistent, expert handling of complex EPL cases, ensuring timely and fair resolutions. Policyholders also benefit from access to Zywave risk management tools, our third-party ML vendor, which offer proactive support through training, compliance resources, and best practices.
Q). You have been with Berkley Select for many years now. What do you like about writing the ML line?
A). What I really enjoy about writing the ML line are the relationships. After 17+ years with Berkley Select, I’ve had the chance to work closely with brokers and clients across a wide range of industries, and that personal connection is incredibly rewarding. Every account is different, and I love the challenge of digging into the details of each risk. It’s not just about underwriting a policy, it’s about understanding a business, anticipating its needs, and being a trusted partner in protecting what matters most to them. That mix of strategy, collaboration, and problem-solving is what keeps the work exciting and meaningful for me.
Disclaimer:
Berkley Select is a member company of W. R. Berkley Corporation, a Fortune 500 Company. The views expressed here are those of the author and do not necessarily represent the views of Berkley Select or W. R. Berkley Corporation. Not all products and services are available in every jurisdiction, and the precise coverage afforded by any insurer is subject to the actual terms and conditions of the policies as issued.