Employement Practices Liability

epli

Why is Employer practice liability is so important to buy for businesses?

Recently one of our clients reported that they had a claim for an employment issue.  The Client stated that a previous employee was suing them for wrongfully being terminated from for the company.   Generally employment liability is excluded from a typical General liability policy unless specifically added at the start of the policy and often times only will cover for a sub limit of the policy if added.  In this case the client had to come out of pocket for attorneys cost and settlement as this client chose not to purchase this coverage when offered this very important insurance policy which cost them well over 20,000 dollars  For your free estimate call us today to speak about your business insurance needs!!!!

The most common E.P.L.I “wrongful acts” are the following:

Discrimination;

Harassment;

Wrongful termination;

Failure to hire/promote;

Defamation;

Invasion of privacy/confidentiality;

Negligent hiring and supervision;

and Retaliation and reprisal. 

In addition, some E.P.L.I policies provide coverage for wage and hour (FLSA) claims.  Because of the increasing frequency and severity of wage and hour claims, most employers find this coverage to be an excellent investment.

Many E.P.L.I policies also exclude:

  • Worker Adjustment and Retraining Notification Act (WARN) claims;
  • Americans with Disabilities Act (ADA) claims;
  • Wage and hour (FLSA) claims;
  • Nonpecuniary or injunctive relief; and
  • Insurance benefits.

Because of the many variations in exclusionary language, employers should be careful when shopping for E.P.L.I insurance.  Talk to your agent today.  A policy with fewer exclusions may cost bit more, but it may still be a good investment.

Conclusion

E.P.L.I insurance provides employers with a vital layer of risk-management protection.  However, because of the variations in E.P.L.I policy language, it is important to review the particular policy before purchasing coverage, and before tendering the defense.

In the next installment, we will look at practical roadblocks employers often encounter when applying for E.P.L.I insurance, and when seeking E.P.L.I coverage for particular claims.

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