Employment Practices Liability Insurance provides protection for your entity from claims / lawsuits alleging sexual harassment, discrimination, wrongful termination, and other defined employment-related allegations.
Employment Practices Liability Insurance, often referred to as EPLI coverage, has evolved over the past decade or two. More employers are aware of its importance simply through high-profile court cases that have awarded millions of dollars to employees.
It is important for an employer to note employment laws such as:
One key provision of 1991 Act was the requirement of a jury trial for most alleged types of work-related discrimination, if desired by the plaintiff employee. This set the tone for the expansion of Employment Practices Liability Insurance.
In the 1990s, several insurance companies developed Employment Practices Liability insurance policies as a stand-alone product or by endorsement to a Directors & Officers policy. Simply adding the EPLI coverage to the D&O policy proved to be fairly ineffective. EPLI is more "claims frequency" oriented while D&O is more "severity" oriented with less claims frequency.
Both exposures are subject to the policy aggregate limit. A D&O claim can exhaust the policy's aggregate limit, which would leave you without any available coverage for EPLI exposure. Also insurance carriers monitor EPLI claim experience which can jeopardize D&O renewal when both exposures are covered on the same policy.
For above reasons, insurance carriers can provide a stand-alone EPLI Insurance Policy to your firm.
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Answers about the plan, including eligibility, options, enrollment, customer service and more.
Can employment practices claims apply to my company even if we have fewer than 15 employees?
If I use contract employees, could I still have employment practices liability?
Isn’t this coverage available under a general liability policy?
Isn’t this covered under my Workers' Compensation policy?
What other insurance products are available to broker-dealer firms?
How can I learn more about the insurance products offered by Mercer Consumer and how they can best serve my firm?