Blog - Month: July 2026
Study Finds AI Hiring Tools May Increase Bias Risks
A new study has found that artificial intelligence AI hiring tools can disproportionately screen out Black and Asian job applicants and repeatedly reject the same candidates across multiple employers using the same technology.
The findings raise new concerns for employers as AI increasingly becomes a fixture in recruiting. According to the World Economic Forum, about 90% of firms now use artificial intelligence to help vet job applicants.
Researchers at Stanford’s Institute for Human-Centered Artificial Intelligence analyzed 4 million job applications submitted to more than 150 employers using the same third-party hiring platform. They found that 26% of Black applicants and 15% of Asian applicants applied for positions where the AI system produced outcomes that met the Equal Employment Opportunity Commission’s standard for adverse impact. That means about 40,000 applications by these applicants could have advanced to the next stage of the hiring process.
The study’s findings mean that employers need to be mindful of potential discriminatory results from using AI during the hiring process. Courts have historically held employers liable for practices that create disparate impact on protected groups, and several recent lawsuits have challenged the use of AI in hiring under federal anti-discrimination laws.
Bias may be hidden
The study found that discriminatory outcomes can be difficult to spot because aggregate data often mask problems.
For example, an AI system might recommend Black applicants for one type of job but reject them for another. When all positions are combined, the disparities may disappear statistically even though significant differences exist for individual jobs.
That distinction matters because courts typically analyze disparate-impact claims on a position-by-position basis.
Perhaps the study’s most significant finding involves what researchers call “algorithmic monoculture.”
Many employers rely on the same small group of third-party vendors to screen candidates. As a result, the same algorithms may influence hiring decisions across hundreds of companies.
The researchers found that applicants who applied to multiple jobs screened by the same AI platform were more likely to be rejected by every employer than would be expected if each company made decisions independently. One in 10 applicants who submitted four applications through the platform was rejected by all four employers.
The takeaway
The study reinforces a key legal truth: employers remain responsible for the tools they use.
Even when using systems from third-party vendors, courts are likely to hold employers accountable for discriminatory outcomes. As a result, employers should treat AI governance as a central part of their compliance efforts.
Employers that use AI in recruiting may want to consider the following safeguards:
- Conduct adverse-impact analyses by individual job position.
- Require vendors to provide validation studies and bias-testing data.
- Maintain human review of applicants screened out by AI.
- Periodically audit hiring outcomes for potential disparities.
- Document how AI systems are selected, tested and monitored.
- Establish oversight teams that include HR, legal and technology personnel.
- Train managers on the limitations and risks of automated decision-making.
- Closely monitor evolving federal and state regulations governing AI in employment.
Construction Insurers Scrutinizing Bad Risks as Cost Drivers Rise
As the construction industry continues to benefit from strong demand for large projects, the insurance market is becoming increasingly selective. Insurers are drawing sharper distinctions between contractors with strong or challenged claims histories, according to a new report.
According to Aon’s “2026 Global Construction Insurance and Surety Market Report,” inflation, supply chain volatility, geopolitical uncertainty, cyber risk and growing catastrophe losses continue to influence pricing and underwriting. Across nearly every line of coverage, insurers are rewarding well-managed risks with stable pricing and ample capacity while scrutinizing accounts with poor loss experience, catastrophe exposure or elevated liability concerns.
Here’s a look at four main construction insurance lines.
Construction property
The construction property market remains one of the more stable segments. Capacity is generally plentiful, and pricing has softened modestly following a relatively mild catastrophe year. However, insurers remain focused on price adequacy and limiting natural catastrophe exposures.
Wildfire, severe convective storm, flood and earthquake exposures continue to drive underwriting decisions. While pricing for named windstorm, flood and earthquake risks has largely leveled off in many areas, contractors operating in high-hazard regions may face higher deductibles, tighter limits and more restrictive terms.
Water damage remains the leading source of routine construction losses, prompting underwriters to place greater emphasis on loss-control measures and technology designed to prevent or mitigate claims.
Construction casualty
The casualty market remains the most uneven segment of the construction insurance landscape. Commercial auto liability and physical damage rates continue to rise as insurers grapple with profitability and escalating claims costs. Contractors with large fleets, particularly in California, Florida, Georgia, Illinois, Louisiana and Texas, face challenging conditions.
General liability rates have been relatively stable for many commercial contractors, but heavy civil contractors, residential builders and firms with significant wildfire exposure continue to see higher rates and more restrictive underwriting.
Meanwhile, nuclear verdicts and social inflation continue to pressure excess liability markets. Insurers are deploying smaller limits, requiring higher attachment points and becoming more selective about the risks they support.
Professional liability
Professional liability conditions remain broadly stable for architects, engineers and contractors, particularly for organizations with fewer claims.
However, claims costs continue to rise due to inflation, higher defense costs and large verdicts. As a result, many carriers are pushing policyholders to take on higher deductibles and retain more risk, especially on large projects and loss-affected accounts.
Project-specific professional liability coverage remains available, but can be costly for megaprojects, where premiums often represent a significant percentage of policy limits.
Surety
The surety market remains one of the healthiest construction insurance lines. Strong infrastructure spending, data center construction and public-sector investment continue to support growth, while surety capacity remains adequate.
That said, insurers are starting to pay out more in claims in the mid-market construction sector due to:
- Rising supplier non-payments,
- Increasing performance defaults, and
- Growing contractor insolvencies.
As a result, surety underwriters are paying closer attention to financial statements, backlog management and aggregate exposure.
For financially strong contractors, rates remain stable and capacity is available. As project sizes continue to grow, however, sureties are increasingly focused on aggregate bonding capacity and the financial strength needed to support larger, more complex project portfolios.
The takeaway
While capacity remains available across most construction lines, insurers are becoming more selective. Contractors that want favorable rates will need to focus on risk management, sound financial management, effective fleet controls and disciplined project execution.
Rooftop Solar Systems Can Complicate Commercial Property Fires
While solar technology can provide significant long-term benefits for commercial property owners, they should also understand how these systems can affect fire safety.
Solar panels do not frequently cause fires on their own. However, when a fire occurs, the presence of a rooftop solar array can complicate firefighting efforts and increase the severity of the loss. As insurers encounter more claims involving solar-equipped buildings, many are paying closer attention to how these systems are installed and maintained.
Fires often require firefighters to quickly access rooftops, ventilate buildings and locate hidden fire conditions. Solar arrays can interfere with these tactics in several ways:
- Panels continue producing electricity when exposed to light, even after power is shut off.
- Large arrays can limit roof access and reduce available work areas for firefighters.
- Panels may block ventilation openings used to release smoke and heat.
- The area beneath panels can allow fire to spread across a roof.
- Solar equipment can interfere with thermal imaging and efforts to locate hot spots.
- The added weight of panels can affect structural stability during a fire.
- Burning components and battery systems may produce toxic smoke and hazardous gases.
Because of these obstacles, firefighters may need to alter their tactics, which can delay suppression efforts and increase damage to the building and its contents.
Installation and maintenance
Most solar systems are safe when installed correctly. However, poor workmanship, incompatible electrical components, damaged connectors and inadequate maintenance can create additional hazards.
Commercial property owners should work only with experienced, reputable contractors who follow National Electrical Code requirements and manufacturer specifications.
Property owners should also consider the building itself. Roof construction materials, insulation and available access routes play an important role in fire safety.
Steps to reduce the risk
- Hire qualified, certified solar installers.
- Ensure systems include rapid-shutdown capabilities.
- Maintain adequate roof access and firefighter pathways.
- Clearly label disconnect switches and electrical equipment.
- Remove debris that accumulates beneath panels.
- Replace damaged connectors or wiring promptly.
- Review any manufacturer recalls affecting system components.
- Evaluate battery storage systems separately and follow fire safety standards.
One of the most effective steps commercial property owners can take is to work with the local fire department before installation begins.
Large building owners should consider inviting the fire department to review installation plans and develop a firefighting strategy before the project is completed. Sharing information about roof layouts, equipment locations, shutoff procedures and access points can help emergency responders prepare for a possible future incident.
Written emergency procedures should also clearly identify who is responsible for shutting down solar equipment and communicating with first responders.
The takeaway
Solar panels can be a valuable investment, but they change how firefighters respond to a building fire. Employers that approach solar panel installation judiciously to reduce firefighting issues can reduce their risk and potential damage.
If you are considering solar panels for your commercial property, please call us to discuss your plans. If you can show your insurer that you’ve taken steps to mitigate damage should a fire occur, you may positively affect your insurance rates.
High Heat Can Turn Routine Workers’ Comp Claims into Complex Cases
Summer heat creates an obvious risk of heat exhaustion and heat stroke, but its impact on workers’ compensation claims often extends beyond these classic injuries.
High temperatures can contribute to workplace accidents, complicate medical evaluations and make otherwise straightforward claims more difficult to resolve, particularly when workers have pre-existing medical conditions.
Research has found that workplace injury rates rise noticeably during periods of extreme heat, even among workers who never develop a diagnosed heat illness.
In many cases, heat may act as a contributing factor rather than the primary injury. A dehydrated worker, for example, may lose focus while operating machinery. Fatigue may lead to a misstep from a ladder or scaffold.
Pre-existing conditions complicate causation
When an employee suffers a medical event during hot weather, insurers often try to determine whether the injury resulted primarily from workplace heat exposure or from:
- Underlying health issues — Diabetes, cardiovascular disease, kidney disease, obesity and high blood pressure can reduce the body’s ability to regulate temperature.
- Medications — Certain prescription medications, including diuretics, antihistamines and some psychiatric medications, may interfere with the body’s ability to cope with heat, making workers more susceptible to heat-related illness.
The existence of a pre-existing condition or the use of prescription medications does not automatically prevent an employee from receiving workers’ compensation benefits.
In many jurisdictions, if workplace conditions materially aggravate, accelerate or worsen an existing medical condition, the injury may still be compensable. A worker whose underlying heart condition is triggered or worsened by prolonged heat exposure may still have a valid claim if evidence shows that workplace conditions substantially contributed to the event.
Physicians may also evaluate whether a portion of a worker’s disability resulted from the natural progression of the pre-existing condition rather than work-related heat exposure. That process can influence claim costs and benefit determinations.
Thorough investigations common
Because heat-related claims may involve multiple contributing factors, claims professionals typically gather more evidence than they would for other workplace injuries.
Investigations may include:
- Weather conditions and heat index at the time of the incident
- Job duties and physical workload
- Hydration practices, rest breaks and acclimatization
- Use of personal protective equipment
- Witness statements
- Medical records documenting pre-existing conditions
- Information about medications that could affect heat tolerance
The more complete the documentation, the easier it becomes to determine whether heat materially contributed to the workplace injury or illness.
Prevention remains the best strategy
Providing water, shade, rest breaks, acclimatization for new staff, supervisor training and early recognition of heat stress symptoms can reduce the likelihood that heat exposure will develop into a serious injury.
Employers should also recognize that some workers face elevated risks during periods of high heat due to underlying medical conditions or medications. While employers generally may not inquire about an employee’s specific medical conditions, they can educate and support workers who may be more susceptible to heat-related injuries.
Employers may:
- Educate employees that certain conditions can reduce heat tolerance.
- Remind workers that some medications may increase the risk of dehydration or overheating.
- Encourage employees to discuss heat-related concerns with their physician or pharmacist if they have a chronic health condition or take prescription medications.
- Provide additional hydration and rest-break opportunities for workers who may be more vulnerable to heat stress.
- Encourage employees to promptly report symptoms such as dizziness, weakness, confusion or excessive fatigue.
- Train supervisors to recognize that workers with underlying conditions may exhibit signs of heat stress more quickly than others.
- Reinforce the buddy system so co-workers can identify early signs of distress and seek help if needed.
- Arrange temporary adjustments to work schedules, job rotations or assignments during periods of extreme heat when appropriate.
- Promote a workplace culture in which employees feel comfortable raising concerns about heat exposure without fear of stigma or retaliation.