Employment Practices Liability (EPL) insurance protects businesses for employment-related losses. Coverage is triggered based on the policy’s definition of an Employment Practices Act.
The most common definitions include:
- Sexual harassment
- Wrongful termination
- Breach of employment contract
- Negligent evaluation
- Failure to employ or promote
- Wrongful discipline
- Deprivation of career opportunity
- Wrongful infliction of emotional distress
- Violation of any federal, state or local civil rights laws
In a 2015 report by the Insurance Information Institute, it was shown that $1.5-4.7M was the average amount spent on defense and settlement expenses for Employment Practices Liability claims. If you or your business possesses an EPLI exposure, you may be surprised by the availability of competitive prices for this insurance coverage. Each policy may contain important coverage considerations, so it’s important to carefully review each policy detail and be sure it matches your needs.
When switching from one carrier to another, be sure the Retro date is matched by new carrier. Also, when initiating coverage, always try to obtain “full prior acts” coverage – this will ensure that any past activities are covered if they generate a claim later.
Definition of Employment-Related Practices
The most common coverage gaps exist in the definition of Employment Practices. There are so many instances of claims which can arise, so it’s advisable when comparing policies, to buy the one with broadest definition even if premiums are a bit higher.
Employment Practices Liability Insurance, clearly, won’t protect you from every type of exposure your business may face. As a result, there are other types of insurance designed to meet your entire needs.
Here are a few:
- Commercial General Liability
- Commercial Property
- Business Owners Policy
- Professional Liability
- Fiduciary Liability
- Business Auto Liability
- Workers Compensation
- Cyber Insurance
- Flood Insurance
- Commercial Umbrella
- Surety Bonds
>> LEARN ABOUT OTHER COMMERCIAL INSURANCE SOLUTIONS
Lets Reduce Your Rates and Improve Coverage
Most people don’t understand their unique risks or their insurance and are therefore buying the wrong coverage and paying too much. If you work with our insurance agency, we will implement our simple 3-step process to identify your key exposures, improve insurance coverage and reduce rates.