Employment Practice Liability

Overview

Employment practices liability insurance covers (up to the policy limits) damages for which an employer is legally liable such as violating an employee's civil or other legal rights. In addition to paying a judgment for which the insured is liable, it also provides legal defense costs, which can be substantial even when there has been no wrongdoing. EPLI covers businesses against claims by workers that their legal rights as employees of the company have been violated. The number of lawsuits filed by employees against their employers has been rising. While most suits are filed against large corporations, no company is immune to such lawsuits. Recognizing that smaller companies now need this kind of protection, some insurers provide this coverage as an endorsement to their Business Owners Policy (BOP). An endorsement changes the terms and conditions of the policy. Other companies offer EPLI as a stand-alone coverage.

Classes	Most Classes are eligible for Employment Practice Liability. Speak to your Account Executive about specific accounts.
What is Required / Forms	New Submissions Requirements: Complete ACORD Applications Company  Supplemental Applications – when applicable (Ask your FCII Account Mgr.) Current Valued Loss Runs with a minimum of 3 years (5 years preferred) If Available: Copy of current policy or explanation of the type of coverage currently provided. Expiring premium or target premium
Direction for Submissions	All applications should be submitted 30-45 days before current policy’s expiration date.
Insurance Company Rating	All Carriers are “A” Rated
Territory	All States
Coverage	EPLI provides protection against many kinds of employee lawsuits, including claims of: Sexual harassment Discrimination Wrongful termination Breach of employment contract Negligent evaluation Failure to employ or promote Wrongful discipline Deprivation of career opportunity Wrongful infliction of emotional distress Mismanagement of employee benefit
Deductibles	Follow package deductible if stand alone coverage.  Deductibles usually start at $1,000.
Marketing Material	Available upon request
Premium Financing	Yes
Notes The cost of EPLI coverage depends on your customer’s type of business, the number of employees they have and various risk factors such as whether the company has been sued over employment practices in the past. The policies will reimburse against the costs of defending a lawsuit in court and for judgments and settlements. The policy covers legal costs, whether your company wins or loses the suit. Policies also typically do not pay for punitive damages or civil or criminal fines. Liabilities covered by other insurance policies such as workers compensation are excluded from EPLI policies. To prevent employee lawsuits, educate your insured  and their employees to  minimize problems in the first place: Create effective hiring and screening programs to avoid discrimination in hiring. Post corporate policies throughout the workplace and place them in employee handbooks so policies are clear to everyone.