Employment Practices Liability Insurance (EPLI)

From small firms to large corporations, innocent remarks can be misinterpreted and lead to allegations that need to be addressed. And the cost of paying for a legal defense and a potential adverse judgment or award can often be financially devastating for a company.

EPLI protects companies from allegations of:

  • Immigration Reform Control Act
  • Third Party Wrongful Acts
  • Wage & Hour Disputes
  • Retaliation
  • Wrongful Termination
  • Discrimination
  • Harassment
  • Retaliation
  • Workplace Bullying

Key Features:

  • Limits available up to $15M
  • Defense Costs in addition to the Limit of Liability available
  • Broad definition of Employment Practices Act
  • Favorable wording for punitive, multiple, or exemplary damages
  • Definition of claim includes: arbitration, regulatory & administrative proceedings, EEOC/DOL investigations, & requests to toll the statute of limitations
  • Third Party Liability coverage endorsement available
  • Definition of Individual Insured includes leased employees
  • Wage and Hour coverage is available
  • Independent Contractor coverage is available
  • A triple aggregate retention available for eligible Insureds
  • Complementary coverages to provide broader risk management D&O, Fiduciary, Crime, and Cyber Liability

Claim Scenarios

  • Disability Discrimination An employee on medical leave for an illness returned to work, and was not happy with the accommodations made for his condition. He sued alleging lost wages, emotional distress, and violation of disability discrimination statutes. Payout: $100,000
  • Racial Discrimination A group of applicants sued a private retail store for ethnic and racial discrimination after learning they had all been denied employment strictly based on their race and ethnic background. Payout: $200,000
  • Retaliation & Harassment An assistant to the CFO was fired for divulging information about impending layoffs at the company. The assistant brought suit for retaliation and sexual harassment claiming the CFO always made suggestive comments to her. Payout: $150,000