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Dana Wynkoop Insurance Agency
Representing personal and commercial insurance products.
Dana Wynkoop Insurance Agency - Direct 310.600.4462 – Email [email protected]
Employment Practices Liability Insurance (EPLI)
What is EPLI? EPLI is a kind of liability insurance covering wrongful acts arising from the employment process. It provides
protection against claims made by employees, former employees, or potential employees. EPLI protects
employers from claims made by workers who have sued them for violating their legal rights as employees.
Standard liability insurance policies do not provide adequate coverage for employment-related risks.
Why would a business need EPLI?
Employment allegations are a common form of business-related claims. The high cost of lawsuits due
to growing number of job-related lawsuits and claims have created the need for business owners and companies
to financially protect their businesses and the general liability coverage on their business insurance policy does
not protect against employee related lawsuits.
When would a business need EPLI?
Employment Practices Liability Insurance is needed as soon a business starts to hire employees. Most investors
and directors will require that a business or company carry EPLI coverage as part of the Directors and Officers
Liability Insurance since they can also be held liable in suits relating to employment practices.
What does EPLI cover?
EPLI could include, discrimination (age, sex, race, disability, etc.), wrongful termination of employment, sexual
harassment, breach of employment contract, hostile working environment and lack of advancement. Additional
causes of action which are alleged in employment litigation, such as libel, slander, or other defamation, invasion
of privacy, mental anguish, infliction of emotional distress, loss of consortium, assault, battery, negligent hiring,
supervision, promotion or retention in connection with any other employment-related claim, can often be
covered.
How does EPLI coverage work?
EPLI insurance 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 incident that triggered the claim and at the time
when the claim is filed. Most policies start at 1 and go as high as 25 million dollars. Additionally most EPLI
insurance policies include a deductible. EPLI is commonly written either on a stand-alone basis. An EPLI
policy can also be written as a rider for all of the common employer’s policies, including directors and officers,
employers liability, and comprehensive general liability.
What does EPLI coverage not cover?
EPLI policies generally exclude coverage for: 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,
Certain Americans With Disabilities Act Claims, Intentional Institutional Claims (such as retaliating against a
whistle blower), and punitive damages.
