Employment Practices Liability Insurance

Employment Practices Liability Insurance (EPLI) protects employers from claims made by employees alleging wrongful termination, discrimination or harassment, including sexual harassment. EPLI coverage pays for liability damages and defense costs due to claims brought by full-time, temporary and seasonal employees.

It’s the first truly affordable way to protect a small business from losses that on average run from $22,400 to $40,500. The cost of an employment charge can damage a small business’ financial health or even threaten it altogether. That’s why EPLI coverage is essential.

In addition to broad coverage, experienced EPLI claim specialists are part of our program. Plus, employers who need legal representation have access to specialized employment attorneys. We also offer a loss prevention website with model employment practices and procedures, information about laws, and advice to help employers prevent or minimize employee complaints.

There are numerous federal and state laws under which employees may bring actions against their employers for allegations such as sexual harassment, discrimination and wrongful termination. Employees are aware of these laws and show a greater inclination to pursue legal rights and remedies. This, coupled with a sense of entitlement, has bred an atmosphere where employers are often forced to spend significant dollars for a legal defense to prove an employee’s groundless allegations are false.

Visit EmployerProtection.net for a look at the valuable resources we offer.

FAQ

EPL coverage protects small businesses from employment-related claims brought by employees, independent contractors, leased employees and even applicants for employment who are alleging discrimination, harassment (including sexual harassment), wrongful termination as well as other employment-related wrongful acts.

Our coverage also protects the Insured against charges of discrimination or sexual harassment brought by customers, clients or vendors against the business (optional).

Even the smallest of businesses need EPL coverage regardless of the class of business. No business is immune to a charge being brought against them in today’s litigious society, especially given the growing diversity in our workplaces and changing cultural and social trends.

Insureds are eligible with up to 50 full-time employees.

This coverage includes:

  • Indemnity coverage
  • Defense costs (within the Limit)
  • Full prior acts
  • Punitive damages (where insurable under state law)
  • Automatic extended reporting period
  • Supplemental extended reporting period available

This coverage includes:

  • Claims-made and reported
  • Duty to defend
  • Covers “wrongful employment acts” anywhere in the world
  • Definition of claim includes both monetary and non-monetary relief
  • Recognized volunteers are included in the coverage
  • Broadly defined “wrongful employment acts”

Optional Coverages to consider include:

  • Third Party Coverage for charges of discrimination and sexual harassment brought by customers, clients or vendors (must be selected on declarations page)
  • Higher limits are available on a referral basis pending an underwriting questionnaire for the higher limits of: $500,000 and $1,000,000
  • Optional Extended Reporting Period is available

  • Legal advice helpline for business owners to obtain general employment guidance (usage does not erode the limit)
  • Loss prevention website with current, ready-made employment policies and procedures to keep clients in the know and to assist them in building effective human resources policies to mitigate their risks
  • Defense is provided by specialized employment law firms

For more information on EPL coverage contact your local IMT Independent Agent.