Employment Practices Liability Insurance is commonly referred to as EPLI. This coverage or product has been developed from the fact that basic General Liability Insurance was never designed to cover the actions of an employer. Because of this, EPLI coverage has become one of the newest products offered.
The product is designed to insure the employer for claims brought by an employee, prospective employee or former employee. Claims can stem from refusal to employ a qualified applicant, failure to promote an employee, a demotion, hourly wage/overtime disputes, wrongful discipline, sexual harassment, discrimination, humiliation, issues in the areas of race, color, creed, national origin, marital status, medical conditions, age, gender, sexual orientation or sexual preference, mental or physical impairments, slander, defamation of character or libel and invasion of privacy.
The general public is becoming more and more aware of their rights in these types of situations. The federal and state courts are seeing an alarming increase in the number of cases filed annual, more than 100% increase in just the past 10 years. In addition, the legal field has become extremely adept at filing and winning bigger and bigger awards. The average award is in excess of $300,000 with defense costs reaching in excess of $200,000.
If you are an employer, then you are a potential target for this liability exposure. Learning how to avoid these types of exposures and transferring the risk to an insurance company well versed in the coverage may be paramount to your companies survival. Obviously, this is a very unique coverage and product line that requires an expertise and due diligence in assuring that your company or firm is adequately insured. We work with all of the major carriers in the market place, please contact us for a quote or to answer any additional questions you might have.
We have included some real life claims compliments of Arch Insurance Group.