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Tag Archive for: construction industry

EPLI: Does Your Construction Business Need It?

December 5, 2022/in Construction, High-Risk Insurance, News

In the world of insurance, there are so many acronyms to keep track of. Today, let’s chat about Employment Practices Liability Insurance (EPLI).

More specifically, we’re going to cover the industries that need EPLI as well as answer the question, does your construction business need it? If so, why?

WHAT IS EPLI?

Employment Practices Liability Insurance, or EPLI, is insurance that “provides coverage to employers against claims made by employees.”

WHAT DOES EPLI COVERAGE COVER?

Employment Practices Liability Insurance policies typically extend coverage to the following:

  • Wrongful Termination
  • Sexual Harassment
  • Wage-Related Claims
  • Claims of Unequal or Unfair Pay
  • Discrimination Claims (i.e. age, race, gender, sexual orientation)
  • Third-Party Claims

According to Amtrust Financial, the below are also common employer missteps that may be covered:

  • Failure to Hire or Promote
  • Libel, Slander, Defamation of Character, or Invasion of Privacy
  • Wrongful Infliction of Emotional Distress
  • Wrongful Discipline or Demotion

WHY IS EPLI IMPORTANT?

According to Advisen, only 32% of all construction firms with 50 to 200 employees and 20% of all firms with fewer than 50 employees have stand-alone EPLI coverage.

This statistic is low and frightening as the costs associated with EPLI claims can be shocking.

EPLI claims can be detrimental to businesses of all sizes and types. EPLI helps protect against many kinds of employee lawsuits, which is why it’s important for businesses to invest in coverage.

WHAT INDUSTRIES NEED EPLI?

The fact of the matter is that some industries are more susceptible to these types of claims than others. These industries include:

  • Healthcare
  • Professional services
  • Restaurant and food services
  • Retail, and
  • Manufacturing

An additional industry that should consider EPLI is construction. Continue reading to find out why.

DOES YOUR CONSTRUCTION BUSINESS NEED EPLI?

The answer is most likely ‘yes.’

The construction industry is known for its rapid growth and often accompanying layoffs, which can lead to a particular job being eliminated or terminated.

Additionally, due to the fluctuating nature of contract work, contractors may find themselves vulnerable to wrongful termination and potential discrimination claims.

Employees also often introduce post-employment wage and hour claims, which stem from improper overtime and breaks.

Lastly, when contractors work, they often come into contact with the public which can lead to remarks or actions that other people find objectionable. It is difficult for employers to prove these allegations due to not being present for the incidents in question.

HOW TO MINIMIZE EPLI CLAIMS AS AN EMPLOYER

So, how can an employer minimize expensive EPLI claims against their construction business?

Most importantly, study and adhere to the guidelines established by the Equal Employment Opportunity Commission (EEOC). Some of these guidelines include:

  • Clearly define employment practices and policies
  • Schedule training workshops
  • Keep your eye on your workplace
  • Let your workforce know employment practices violations will not be tolerated
  • Maintain an “open door” policy

A Final Word

EPLI is important for any business, but it’s especially important for construction companies. If you’re in the construction industry, make sure you have the right EPLI policy in place to protect your business from employment-related lawsuits.


As discussed above, hiring employees carries inherent risks. Because of this, we’ve put together a few tips on how to reduce your risk when hiring, in California specifically.

https://compedgeins.com/wp-content/uploads/2022/01/EPLI-Does-Your-Construction-Business-Need-It-1.png 628 1200 Brenda Jo Robyn https://compedgeins.com/wp-content/uploads/2020/11/logoweb.png Brenda Jo Robyn2022-12-05 08:45:002022-12-05 02:41:37EPLI: Does Your Construction Business Need It?

How the California Labor Shortage Is Affecting the Construction Industry

December 12, 2021/in Construction, News

For anyone in California who has taken a stroll around town lately, you’ve likely noticed the myriad ‘now hiring’ signs every way you look. Restaurants and retail stores are experiencing obvious shortages, but the construction industry is especially feeling the deficit of ready labor right now.

Let’s talk about how the California labor shortage is affecting the construction industry.

Why Is There a Labor Shortage in California?

When asked about the California labor shortage, Brenda Jo Robyn, founder of Competitive Edge Insurance, said this:

“You can see labor shortages everywhere,” says Brenda Jo. “The shortage of skilled labor is getting tighter and tighter.”

But why? There are many factors that contribute to the labor shortage we are experiencing as a nation right now. According to economists at CNBC, some reasons include:

  • Aging
  • Retiring workers
  • Border control and immigration limits
  • Demands for better pay and working arrangements
  • Workers leaving California due to increased housing costs
  • And more

The labor shortage in the construction industry specifically, however, is not only a California issue.

A Larger Issue at Hand

According to the Associated General Contractors of America (AGC) and Autodesk, “78% of construction companies are having difficulty hiring construction workers.”

Some of the most difficult positions to fill, according to NBC San Diego, include:

  • Drywallers
  • Pipelayers
  • Carpenters
  • Sheet metal workers
  • Plumbers
  • Bricklayers

Even if a wave of individuals wanted to get into the construction field right now, it takes a great deal of time to become proficient in many of these jobs. Not to mention the time required to receive proper licensure from the California Contractors State License Board (CSLB).

But construction projects need laborers now.

Some companies have even had to turn to out-of-state workers, bringing them in for individual projects to meet demands.

The Construction Industry During COVID and Today

california labor shortage construction industry

Contractors have managed to stay busy during the COVID-19 pandemic. How? It was the perfect time for construction projects to thrive last summer considering a few elements working in combination:

  • The high volume of money made available to contractors from the government
  • Historically low-interest rates
  • The massive sell-off of homes

In fact, as soon as things were deemed “safe enough,” many homeowners and business owners jumped on the opportunity to renovate their properties. Think kitchen remodels, backyard updates, you name it.

But now, the supply can’t meet the high demand.

In an article written by Fox, contractor Michael Wolff was interviewed. “I would pay a ridiculous amount of money to get a qualified person in here. I would hire 15 people today,” said Wolff. He, like many other contractors, acknowledges that many qualified laborers have preferred to stay at home on unemployment or stimulus or work under the table.

Increased Costs

Brenda Jo of Competitive Edge elaborates on the trickle-down effect of the labor shortage. As a result, the construction industry is hiking up costs to complete projects in an efficient manner.

Brenda Jo explains: “When there’s a shortage, that means there’s a competition. When there’s a competition, wages go up in that industry or that skillset.” All in all, projects cost more.

She continues with the two options contractors are faced with. “Either the employer can’t find enough labor so the job takes longer or you contract more laborers, shortening your project time, but increasing costs,” says Brenda Jo. “There’s a fine balance between those.” And, as we’ve observed, it’s a difficult balance to strike.

The Construction Industry: Looking Forward

The need for skilled laborers across the U.S. will continue to increase in the coming years. In fact, there will be an 11% increase between 2016 and 2026, bringing an additional 747,600 industry jobs to fill.

Today, fewer and fewer children are exposed to the construction world—which, in turn, will further drag out the shortage. Only 3% of people ages 18 to 25 wanted to work in construction, according to an article done by Builder in 2017.

Moreover, “for every five workers retiring, [there is] only one coming in,” according to Robin Bartholow, Builders Exchange Workforce Development Director.

The facts considered, the shortage does not appear to be ending anytime soon. 45% of companies surveyed by AGC reported that they anticipate continuing difficulty in hiring craft and salaried workers.

According to The Los Angeles Times, the construction workers union is partnering with the U.S. government to craft new legislation in hopes of providing:

  • Minimum pay
  • Benefits
  • Training

Immigration reform is an additional solution that could allow skilled, out-of-country workers to aid the shortage, according to the San Francisco Chronicle.

For those who are not a part of the construction workers union, a higher emphasis on training and educating younger generations about careers in construction could help solve the labor shortage in the long run.

Read on to learn what to expect from changing contractor costs as a result of both labor shortages and shipping delays from Brenda Jo Robyn, founder of Competitive Edge Insurance herself.

https://compedgeins.com/wp-content/uploads/2021/11/How-the-California-Labor-Shortage-Is-Affecting-the-Construction-Industry.png 628 1200 Brenda Jo Robyn https://compedgeins.com/wp-content/uploads/2020/11/logoweb.png Brenda Jo Robyn2021-12-12 07:00:002022-04-27 12:46:30How the California Labor Shortage Is Affecting the Construction Industry

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