Employment Practices Liability - EPL Insurance

Definition:

Employment Practices Liability Insurance (EPL Insurance) is a policy covering wrongful acts committed by directors and officers, management personnel and employees arising from the employment process. The most common covered claims include: wrongful termination, discrimination, sexual harassment and retaliation. In addition, this policy can cover inappropriate work conduct, defamation, invasion of privacy, failure to promote, deprivation of a career opportunity and negligent evaluation. The EPLI policy is written on a claims-made basis and the limits are eroded by defense costs.

What you need to know about Employment Practices Liability Insurance:

  • Employment practices liability insurance coverage is a specifically designed policy and is, therefore, excluded from other policies such as the general liability policy or directors and officers policy.

  • Third party EPL Insurance coverage could save your business. Just a few years ago, not many insurance companies wrote EPLI that included third party coverage. This would cover claims mentioned in the definition above that are brought by your customers. Businesses that have a lot of contact with the public are more susceptible to these claims. Examples would be: hotels, restaurants, country clubs, medical facilities, schools and religious institutions.

  • Claims for workplace discrimination are rising quickly as the ethnic and racial composition of the country and the workplace change and evolve. Cultural aspects have become one of the most common starting points for discrimination cases.

  • It is important to review the EPLI policy to make sure that is does not exclude certain categories of claims such, assault and battery in a harassment context, wage-and-hour claims and claims alleging a violation of such laws as the Family Medical Leave ACT (FMLA), the National Labor Relations Act (NLRA), the Fair Labor Standards Act (FLSA) and the Occupational Safety and Health Act (OSHA).

Swingle, Collins & Associates specializes in EPLI coverage in Dallas, Southlake, Westlake, Plano, Coppell, Irving, Argyle and the surrounding areas.  The descriptions of EPLI coverage listed on this website are brief and subject to the provisions, limitations, and exclusions that can only be expressed in your policy and related endorsements. For additional information of how Swingle, Collins & Associates can assist in meeting your coverage needs please contact your dedicated risk manager to discuss the benefits and services of commercial inland marine insurance coverage.

The information contained on this page is provided for informational and educational purposes only. It contains general information on insurance issues and may not reflect the most current developments in insurance coverage and is unlikely to apply in all factual scenarios. The information does not include all the terms, coverage, exclusions, limitations or conditions that may be contained in the actual insurance contract language. The policies themselves must be read for those details. Sample policy forms will be made available upon reasonable request.