With the nation’s first Covid-19 vaccine earning full approval on Monday, expect a slew of new vaccine mandates in offices across the country, including in the Triangle where they’re already becoming common policy.
But shifting sentiment for the shots could also mean costlier insurance policies for companies.
It comes down to Employment Practices Liability Insurance, or EPLI – policies put in place to defend companies against discrimination lawsuits and compensation awards.
“This is untested water,” said Terri Hitchcock, chief insurance officer for Thimble, an online business insurance broker. “There are no easy answers.”
EPLIs basically cover scenarios deemed unfair, discriminatory or harassing in nature, she explains.
“If you’ve failed to hire someone, if you fire someone, if you make their life a living hell on the job,” she said. “This is one area I could see claims being made.”
It's also an area where reports show premiums could already be ticking up in response to the pandemic. A recent report from Reuters shows vaccine issues account for less than 5 percent of U.S. Covid legal claims so far. But it’s estimated that premiums for liability insurance have risen by as much as 75 percent over the last 18 months.
Hitchcock said an issue could arise if an employee claims "I was not given the projects or the jobs that I thought I deserved because I didn’t get a vaccination or I felt harassed or discriminated against and no one wants to work with me.”
“I see it as a potential issue,” she said.
While the legal precedent has been in an employer’s favor when it comes to requiring the shot, discrimination claims around a mandate continue to be a gray area, she said. Also, employers need to be very clear in how they’re going to accommodate those with medical or religious exemptions that preclude the vaccine.
However, uncertainty has not stopped Triangle companies from stepping up with their own vaccine policies.
Firms such as SAS, Red Hat (NYSE: IBM) and Pendo have each issued some form of a vaccine mandate – and did so before the U.S. Food and Drug Administration fully approved the Pfizer (NYSE: PFE) Covid-19 vaccine on Monday.
Todd Olson, CEO of Pendo, a product analytics software firm that’s growing its Raleigh headquarters, said he pulled the trigger on mandatory shots – but just for employees coming into the office, something that’s still optional.
“Team members unwilling or unable to be vaccinated can continue to work from home,” he said, noting that Pendo's offices are operating at less than 20 percent capacity at present. Olson said the firm hasn’t seen any issues with retention stemming from the policies.
On Monday, the FDA fully approved Pfizer’s Covid-19 vaccine for use in patients age 16 and older (it continues to be available under Emergency Use Authorization for children age 12 through 15).
Janet Woodcock, acting FDA commissioner, said “The public can be very confident that this vaccine meets the high standards for safety, effectiveness and manufacturing quality the FDA requires of an approved product.”
“While millions of people have already safely received Covid-19 vaccines, we recognize that for some, the FDA approval of a vaccine may now instill additional confidence to get vaccinated,” she stated. “Today’s milestone puts us one step closer to altering the course of this pandemic in the U.S.”