Employment Practices Liability Insurance (EPLI) protects businesses against claims related to wrongful termination, sexual harassment, discrimination, invasion of privacy, false imprisonment, breach of contract, emotional distress, and violations of wage and hour laws. EPLI is a type of Professional Liability insurance. It is designed to protect business owners from employee lawsuits related to rights protected under the laws mentioned above. EPLI policies operate on a claims-made basis, meaning policyholders are eligible for benefits only if they are covered both at the time the incident occurs and when the claim is filed.

Coverages:

  • Workplace Harassment
  • Workplace Discrimination
  • Wrongful Discharge or Termination
  • Emotional Distress
  • Potential Privacy-Related Claims
  • Potential Reputation Damage (Defamation)
  • Failure to Promote
  • Deprivation of Career Opportunity
  • Negligent Evaluation
  • Legal Defense Costs, including court fees, judgments, and awards
  • Settlement Costs, either before a hearing or settled through mediation

Exclusions:

EPLI policies generally exclude coverage for:

  • Bodily Injury (BI)
  • Property Damage (PD)
  • Intentional or Dishonest Acts
  • Occupational Safety and Health Act (OSHA) Violations
  • Fair Labor Standards Act Violations
  • State Employment Law Violations
  • Consolidated Omnibus Budget Reconciliation Act (COBRA) Violations
  • Employee Retirement Income Security Act (ERISA) Violations
  • Intentional Institutional Claims (such as retaliating against a whistleblower)
  • Punitive Damages

Claim Process:

In the event of a loss, the following actions must be taken immediately:

  1. Notify the insurer of the loss, providing a detailed written statement of the claim, including the nature and extent of the loss, along with an estimate of the damage. Any delay in notifying the insurer may jeopardize the claim, as they may refuse liability for the loss or damage.
  2. Take necessary steps to reduce and minimize the extent of the loss, damage, and liability.
  3. Identify the proximate cause of the loss, assess its type and extent, and determine whether it falls within the policy’s coverage.
  4. Fully cooperate with the insurer and the appointed surveyor during the survey process to ensure proper loss assessment.
  5. Provide all records and evidence requested by the surveyor or insurer to evaluate the extent of the loss and liability under the policy.
  6. Submit required documents, such as the claim form, policy copy, incident report, demand letter, and notice of claim.