Employment Practices Liability Insurance (EPLI)

• Professional Liability for Employment Practices claims
• Protects the business and its employees
• Coverage not typically provided for in a General Liability policy

Employment Practices Liability Insurance (EPLI) is a Professional Liability coverage that covers claims alleging wrongful termination, sexual harassment and discrimination.

Employment Practices Liabilities suits have drastically risen due to ever-changing laws. Some federal discrimination laws include:

• Americans with Disabilities Act (ADA) of 1992
• Civil Rights Act of 1991
• Older Workers Benefit Protection Act of 1990
• The Equal Pay Act
• The Pregnancy Discrimination Act of 1978
• The Rehabilitation Act of 1973
• Age Discrimination in Employment Act of 1967
• Title VII of the Civil Rights Law of 1964

A good Employment Practices Liability Insurance policy will cover the corporation and its employees. Coverage for all employees in the scope of their duties is important in the protection of your corporation. Many times the supervisor who is responsible for employee evaluations, hiring and firing and day-to-day operations is also named in a suit.

Deductibles in an Employment Practices Liability Policy are different because they?re applied to the defense costs and the indemnity payments. Most Employment Practices Liability policies contain a coinsurance clause. This clause states that in addition to the deductible amount, the insured must pay an additional percentage of the defense and settlement costs.

Many people mistakenly believe that coverage for discrimination, sexual harassment and wrongful termination exists under their Commercial General Liability policy. The reality is these losses are not typically covered. Under the Commercial General Liability Policy, there must be a Bodily Injury or Property Damage Claim and rarely does discrimination, sexual harassment or wrongful termination produce either of these.