As the weather heats up and companies ramp up their social calendars with happy hours, team offsites, and the arrival of summer interns, employment practices liability (EPL) risks are also on the rise, according to a Travelers executive.
While these gatherings are designed to foster camaraderie and culture, they can also blur professional boundaries and expose companies to serious legal consequences.
Chris Williams, EPL product manager at Travelers, spoke with Insurance Business to unpack why EPL claims tend to spike during the summer, the types of situations that trigger them, and how employers can protect themselves without putting a freeze on summer festivities.
“Claims related to workplace social events don’t always happen in the office or during work hours,” said Williams. “But employees are still expected to follow workplace conduct rules regardless of the setting.”
Although the Equal Employment Opportunity Commission (EEOC) doesn’t track claims by month, Williams has found a well-established pattern: after-hours work events, particularly those involving alcohol, can be a breeding ground for inappropriate behavior. Common incidents include sexual harassment, unwanted touching, and offensive jokes, often fueled by excessive drinking.
While the intent behind these gatherings is positive, Williams said the outcomes can be anything but. “Without proper guardrails, these events can create an atmosphere more reminiscent of a college party than a professional outing,” he said.
Summer also coincides with the influx of interns and young professionals entering the workplace, many experiencing their first corporate environment.
“Young employees may not be familiar with workplace norms or where the lines are drawn,” Williams said. “And they may also be less likely to speak up if they witness or experience inappropriate behavior.”
The presence of interns can also increase the perception of power imbalances, which can become problematic if older, more senior staff behave unprofessionally. Williams emphasized that the burden is on the company to set the tone and protect all employees, regardless of age or tenure.
Beyond inappropriate conduct, EPL claims can also arise from exclusionary or overly competitive events. More concerning is when these activities result in someone feeling bullied or singled out.
“Companies may not realize that repeatedly scheduling golf outings or paintball competitions could be alienating. Not everyone feels comfortable, or welcome, at those types of events,” Williams said.
“If an employee believes they were targeted during a competitive team event like paintball due to their gender, race, or other protected status, that can quickly turn into a serious claim.”
EEOC data shows sexual harassment charges rose from 6,191 in 2022 to 7,721 in 2023, a 25% year-over-year increase. While employers can’t eliminate all risks, the right mindset and precautions can foster a safe, inclusive environment for employees.
To reduce risk while maintaining a strong workplace culture, Williams encouraged a mix of proactive education, clear policies, and a commitment to accountability:
When it comes to EPL insurance, many employers aren’t fully aware of what’s covered. Williams clarified that most policies don’t restrict coverage based on location or time: what matters is whether the activity is work-related.
“If a company-sponsored summer outing results in a harassment claim, it’s typically covered,” he said. “But employers should still review their policies closely, and work with brokers to understand any potential exclusions or limitations.”
