11 Ways Can Employers Can Foster Mental Health Resilience

Employers have a broad range of options at their disposal to create a work environment conducive to better mental health for all employees.

By: Michelle Kerr | June 10, 2019

As mental health concerns and suicide rates rise, it’s time for employers to shift more attention toward mental health.

This means not only providing support to those who are struggling with a mental health issue but also normalizing the conversation in the workplace and developing or enhancing strategies to maintain the well being of all employees.

In its recent Strong Minds at Work report, employee benefits provider Unum outlined 11 ways employers can build a positive mental health culture and create ways to support employees who may struggle.

1) Eliminate the Stigma

Top-down support for mental health is essential for successful efforts. Mental health champions throughout the organization also encourage healthy dialogue. Awareness messages can be communicated through internal corporate platforms like employee newsletters, break room posters or HR web portals.

2) Employee Assistance Programs

EAPs, typically offered in conjunction with health benefit plans, can help employees address a spectrum of issues affecting mental health, from substance abuse to grief to family issues.

3) Emphasize Prevention

No one is immune to stress or mental health.

Major life events such as childbirth and divorce can cause or aggravate mental health conditions to the point of interfering with work. Likewise day-to-day struggles such as finances or relationships. Employers can bring in mental health experts to help employees build resilience and understand how to recognize warning signs in themselves and their coworkers.

Offer benefit plans that support mental health. EAPs are a good first line of defense for many issues but employers should also be cognizant of whether their health benefit plan options offer sufficient access to quality mental health specialists in network.

4) Telemedicine and Mental Health Apps

Telemedicine can make mental health resources more accessible to employees, even those in remote or rural areas. Companies can also incorporate app-based programs into their mental health risk management efforts. Lyra, Happify, Joyable and Daylight target specific mental health needs.

5) Align Policies and Procedures

Removing barriers to disclosure can encourage employees to seek help sooner. This includes protection against discrimination, which is usually a top concern for employees, as well as providing appropriate workplace accommodations.

Ensure managers are aware of all resources offered, including EAPs, and that they maintain confidentiality when an employee discloses information. Educate employees on policies, procedures and proper protocols to increase employee awareness.

6) Offer Financial Education

Financial concerns were the leading cause of stress across all generations, according to Unum. Employers can help by offering financially focused benefits, such as life and disability insurance, retirement savings options and supplemental health benefits. Affordable protection from life’s unexpected curve balls can help employees secure the peace of mind they need to protect against excessive stress and anxiety.

7) Encourage Self-Care

“Self-care” is a trendy term, but it’s really just about taking care of one’s physical and emotional health.

That can include things as basic as getting enough sleep, eating healthy, drinking water and getting exercise. Good time management and work/life balance skills are also important, along with finding ways to recharge. In addition to raising awareness about the importance of self-care, company leaders can talk to managers about modeling good self care for their teams.

8) Confront Presenteeism Proactively

Clearly communicate to your workforce that you expect them to give their best when they are at work. If they are unable to perform their best, employees should stay home when sick or take the occasional mental health day if feeling heavily stressed.

Some employers have created meditation rooms or time-out rooms for employees to take a break and collect their thoughts. Revisit time-off policies. Offering just a few extra days to employees can send a strong message about how seriously you take presenteeism. Articulate clear guidelines that apply to everyone.

9) Use Alternative Work Schedules

Introducing flex time, telecommuting and other remote work options can provide alternative options for employees caring for a sick family member, parents with a sick child at home, or to someone who may be struggling with anxiety. Ensure there are clear guidelines, schedules and reporting structures for employees using alternative work schedules.

This can help reduce mental-health-related presenteeism, and it also signals to employees your company and its leaders are supportive of a healthy work/life balance.

10) Set a Clear Return-to-Work Strategy

An employee out of work due to a hip replacement or cardiovascular issue likely has very clear guidelines about his or her return. But for employees experiencing a mental health issue, those guidelines won’t be quite as clear.

Transitional return-to-work plans can drive successful outcomes, because they allow employees time to rebuild their sense of worth and mental strength. Address any non-clinical triggers the employee may have, like problems with coworkers or a heavy workload, to help them become successful at work again. Recognize that it might take time. An initial return-to-work effort might be unsuccessful. Leave the door open for when they’re truly ready.

11) Teach Managers What to Look for

A major gap identified by Unum’s research, in partnership with the Disability Management Employer Coalition (DMEC), is a disconnect between employees’ perception of training and the reality communicated by HR professionals.

Consider specific training modules (or even classroom training) for all managers to help them spot warning signs. They should understand how to approach employees who might be at risk and educate them on what resources are available to help. &

Michelle Kerr is Workers’ Compensation Editor and National Conference Chair for Risk & Insurance. She can be reached at [email protected].

How a Carrier Partner Can Help Navigate a Challenging Management and Professional Liability Market

A combination of a choppy economy with increased claims frequency and severity could lead to rate increases in the Management & Professional Liability market.

By: Risk & Insurance | April 3, 2024

Rates in the management & professional liability (M&PL) markets were on the rise from 2020 to early 2023 and are now falling rapidly.

M&PL divisions manage a number of different insurance products including management liability (D&O), professional liability (E&O), employment practices liability (EPL), fiduciary liability policies, cyber, etc. In 2023 and into 2024, a big influence on the marketplace has been the extremely aggressive and softening public company D&O market.

Though these rates have been softening for management liability, that may change over the next few years as companies continue to adjust their business models motivated by economic uncertainty. Layoffs were up nearly 200% last year, Forbes reported, even as other recession indicators, like the inflation rate, improved. A recession could lead to an increased claim activity and force carriers to raise rates.

“Whenever there is a meaningful downturn in the economy, we tend to see claim frequency pop up,” said George Schalick, Jr., senior vice president of the Management and Professional Liability Division at Philadelphia Insurance Companies (PHLY).

With continued fiscal uncertainty, businesses potentially already burdened with pandemic-related claims should seek a carrier with a long history in M&PL products. They will provide much-needed risk management guidance and be better positioned to support their insureds during market fluctuations.

Why Insureds Might See an Uptick in M&PL Claims

George Schalick, Jr., Senior Vice President of the Management and Professional Liability Division, Philadelphia Insurance Companies

The current soft market might come as a bit of a surprise as it does not track with previous underwriting cycles and economic conditions. Afterall, many privately held and non-profit organizations struggled during the early days of the pandemic with shutdowns and rapidly declining revenues. But the Government assistance programs, like the Paycheck Protection Program loans, helped keep many afloat during the tough times.

“During COVID many organizations stopped doing business until they were able to sort out all of the health and safety challenges,” Schalick said. “They were forced to lock down, but then all the government assistance programs allowed them to keep people employed. The increased volume of claims we anticipated we would see coming from the lockdowns and restrictions that were imposed upon businesses in the U.S. didn’t manifest at first.”

“Just because there wasn’t an onslaught of reported claims at the beginning of the pandemic, doesn’t mean the circumstances that would give rise to a claim being reported didn’t occur. Courts and the judicial system were closed or slowed and now that they are back open, we’re starting to see the circumstances that occurred during the COVID lockdowns becoming claims today,” Schalick said. “Litigation is progressing.”

Added to the delayed pandemic litigation is a concern over newer claims that might be filed as the country inches toward an economic downturn. Though a recession was avoided in 2023, experts think a soft dip could occur in 2024, with 76% of economists saying there’s a 50% or less chance of an economic downturn this year — that almost always results in more management liability claims.

“During the Great Recession in 2008, we saw an almost immediate spike in claims because of the economic conditions and the pressure it placed on organizations. They were making personnel changes with significant belt tightening almost immediately.” Schalick said.

What’s in Store for M&PL Policy Rates in 2024?

Despite an uptick in claims and increased economic uncertainty, management liability rates haven’t increased, resulting in market-wide pricing levels that may not meet the increased pressure of rising settlements and jury verdicts.

“Rates are going the other direction and settlement values are not falling,” Schalick said.

The mismatch between rates, claim frequency and severity is, in part, because carriers experiencing the dramatic soft market in the public D&O market are seeking premium gain in the private and non-profit market.

“In the public company market, the rates have been decreasing significantly. The rates were increasing in the private, not-for-profit market, and rightfully so, but there’s a desire to supplement overall mid-size D&O for carriers who also write private not-for-profit, and they see that as an opportunity to aggregate premium,” Schalick said. “So the always competitive landscape in the private, not-for-profit market has dramatically increased in the last 18 to 24 months.”

Still, companies of all sizes and types should be concerned about management liability rates in the future. Legal system abuse is resulting in increases in both the amount of litigation and the size of verdicts plaintiffs are receiving.

Certain areas of the country are particularly vulnerable to this type of legal system abuse. As a result, insureds in these localities are likely to be vulnerable to rate increases.

“The environment is so positive for the plaintiff that forces premium increases so carriers are able to stay in that market long term,” Schalick said.

Why a Tenured Carrier Partner Can Help Insureds Navigate An Uncertain Market

It’s clear that insureds are facing an uncertain M&PL market over the next few years. Fortunately, carriers with a long history in the M&PL space will be there to offer stability.

Philadelphia Insurance Companies has been supporting this market for 35 years. PHLY is committed to offering long-term rate stability, even as economic and claims trends start to push premiums upwards. They have an appetite for all sorts of companies, large and small, for-profit and nonprofit alike.

“We’ve been at this game for a long time and are one of the most tenured underwriters in this space,” Schalick said. “We like to stay very consistent.”

PHLY has worked with both for-profit and non-profit on management liability policies. With dedicated M&PL teams throughout the company’s 13 regions, PHLY provides the support agents and brokers are looking for on behalf of their clients. The teams know their regions well and can respond to local trends. They’re also dedicated to making the renewal process as easy as possible for their partners and policyholders.

“We have real confidence in our results, so we focus a lot on making the renewal experience as painless as possible for all agents and insureds,” Schalick said.

The company is also investing in tools to help insureds avoid losses. Earlier this year, they launched a new online risk management platform, PHLYGateway, which offers resources for insureds on how to create an employee handbook and trainings on issues such as recognizing workplace sexual harassment and discrimination.

If insureds have questions, they can consult a Best Practices Help Line, provided via the platform. That way, they can get on the spot risk management guidance to help them prevent claims.

To learn more, visit: https://www.phly.com/mplDivision/managementLiability/default.aspx.

This article was produced by the R&I Brand Studio, a unit of the advertising department of Risk & Insurance, in collaboration with Philadelphia Insurance Companies. The editorial staff of Risk & Insurance had no role in its preparation.