Employment Practices Liability

Employment Practices Liability Insurance is often referred to as EPLI insurance or EPL coverage. Every organization with employees has an exposure to EPLI or EPL claims and a need for this type of coverage.

What Is EPLI or Employment Practices Liability Coverage?

Employment Practices Liability policies provide protection from the allegations or lawsuits resulting from the following wrongful employment practices:

• Harassment
• Discrimination
• Actual or alleged wrongful termination or dismissal
• Employment related misrepresentation
• Libel, slander, humiliation, defamation, or invasion of privacy claims brought by employees
• Wrongful failure to employ or promote
• Wrongful deprivation of a career opportunity, wrongful demotion, or negligent evaluation
• Wrongful discipline
• Vicarious liability for intentional acts
• Punitive damages
• Coercion or humiliation in relation to marital status, race, gender, physical appearance, age, pregnancy, sexual orientation, or any other group protected by governmental laws

How Are EPLI or EPL Policies Structured?

EPLI or EPL insurance can be offered within a general liability policy (typically a lower limit such as $25,000 or $50,000 in coverage) or on a standalone policy. Standalone policies can offer lower limits (ex: $100,000) but are typically written with a $1,000,000 base limit. These coverages are often combined with coverage for D&O and Fiduciary liability. Carriers will offer higher limits depending on what limit your organization needs. Deductibles range from no deductible to $50,000 or $100,000+ depending on the size and scope of the client.

What Is Included In a EPLI or EPL Policy?

Insurance carriers typically offer in-house or third party vendors services as part of EPLI or EPL policies. This can include consultation, HR assistance, and other risk management consultative services. Some carriers have dedicated hotlines where you can discuss a particular employment situation and get guidance from attorneys on how to handle the matter.

We work with a number of insurance carriers who offer EPLI or EPL coverage on both the personal lines side and commercial side. These can be written on a standalone basis or as part of an overall package with other lines of property and liability coverage.

Have any questions or want to discuss Employment Practices Liability coverage in more detail? Let’s chat!