Using Advisen’s MASCAd database containing about 255,000 cases, Advisen specifically took a look at EPLI and D&O cases.
The database focuses on the largest cases. Clearly seen, California is tops among states for large EPLI cases, with other states such as Texas, Illinois, New York and Florida trailing close behind.
California also stands out when comparing large cases per company, relative to the other states. California and New York lead the pack of 50 states when it comes to settlement amounts of more than $1 million, impacting pricing for exposures in the Golden State.
Categorizing cases, about 40 per 100 cases in California involve wage-and-hour-claims. Wrongful termination also stands out.
Seen here is evidence why wage-and-hour cases are so popular in California. They pay well, with an average settlement amount of more than $6 million. Age discrimination cases are fairly large in terms of settlement amounts, even though there are fewer of them.
In fact across all different types of cases, settlements in California are more than the other states.
Consistently, if you have an EPLI case in California, it’s going to be larger than the other states, according to the severity curve below. Take into account, the loss amounts, which are in factors of 10. So what might look like a slow growth in smallest to largest cases, is actually quite substantial.
Chad Hemenway is Managing Editor of Advisen News. He has more than 15 years of journalist experience at a variety of online, daily, and weekly publications. He has covered P&C insurance news since 2007, and he has experience writing about all P&C lines as well as regulation and litigation. Chad won a Jesse H. Neal Award for Best Single Article in 2014 for his coverage of the insurance implications of traumatic brain injuries and Best News Coverage in 2013 for coverage of Superstorm Sandy. Contact Chad at 212.897.4824 or [email protected].
