Employment Practices Liability Insurance (EPLI)

Employment Practices Liability Insurance deals with wrongful termination, sexual harassment, discrimination, invasion of privacy, false imprisonment, breach of contract, emotional distress, and wage and hour law violations. Employment Practices Liability is part of Professional Liability. Employment practices liability insurance (EPL), a type of policy that business owners can buy to protect their organizations against employee suits for rights protected under acts above. EPLI policies operate on a claims-made basis. This means that policyholders can only receive insurance benefits if they are covered both at the time of the discrimination incident that triggered the claim and at the time when the claim is filed.

Coverages

• Workplace Harassment
• Workplace Discrimination
• Wrongful Discharge or termination
• Emotional Distress
• Possibly Privacy-Based Claims
• Possibly Reputation Claims (Defamation)
• failure to promote
• deprivation of a career opportunity
• negligent evaluation
• Cost of defending a claim in courts, any judgments and awards
• Costs of settlements prior to a hearing or settled through mediation.

Exclusions

EPLI policies generally exclude coverage for:

• Bodily injury (BI)
• Property damage (PD)
• Intentional/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 loss, the following are immediate actions to be taken
Intimate the insurer the occurrence of loss, submit a full statement in writing of the claim, provide the nature and extent of loss and also the estimate of loss. Any delay in intimation might jeopardize the claim as the insurer may express an inability in accepting liability of the loss/damage.

• To take all steps to reduce and minimize the extent of loss/damage and liability.
• Proximate cause of the loss and assess the type/extent and whether it is within the scope of the policy.
• To extend full co-operation to the insurer and the surveyor appointed for completion of the survey work and for proper assessment of the loss.
• Produce all such records and proof as may be required by the surveyor or the insurer for arriving at the extent of loss and the liability under policy.
• Provide documents such as, claim form, copy of Policy, Incident note, demands and a notice of claim received etc.