Employment Practices Liability (EPL), also known as Employment Practices Liability Insurance (EPLI), provides coverage for employment-related suits brought against Companies, Directors and Officers, as well as other employees arising from actual or alleged Discrimination, Wrongful Termination, or Harassment.
Claims are brought by:
- Current or Former Employees
- Applicants for Employment
- Third Parties (Non-employees, i.e. customers)
- Governmental Agencies (EEOC)
Insurable Costs included in the EPL policy:
- Legal Fees (for both the Company and Insured Persons)
- Damages (include some limited Punitive Damages)
- Settlements (includes the plaintiff’s attorney expenses)
Employment Practices (EPLI) Wrongful Acts include actual or alleged:
- Violation of any common or statutory federal, state, or local law prohibiting any kind of employment related discrimination
- Harassment, including any type of sexual or gender harassment
- Abusive or hostile work environment
- Breach of an actual or implied employment contract
- Wrongful deprivation of a career opportunity, wrongful failure or refusal to employ or promote, and wrongful demotion
- Employment-related defamation, libel, slander, disparagement, false imprisonment, misrepresentation, malicious prosecution or invasion of privacy
- Wrongful failure or refusal to adopt or enforce workplace or employment practices, policies or procedures, solely as respects employment-related discrimination or harassment
- Wrongful discipline
- Employment-related wrongful infliction of emotional distress, mental anguish or humiliation
- Retaliation
- Negligent evaluation, negligent hiring, or negligent supervision of others in connection with any of the above points
Limit of Liability and Premiums for EPL
Capacity has increased with Limits available from $1,000,000 to $20,000,000 for EPLI.
Minimum premiums – $2,500 annually for Privately Held companies with 5 or fewer employees.
The above is a limited discussion of EPLI. HCP National is an EPL, ELPI insurance provider, or broker. This blog does not alter or change coverage, nor is meant as legal advice. HCP uses Rubicon Insurance Services as its service partner. http://www.rubiconins.com/
