Employment Practices Liability
Employment Practices Liability Insurance insures against liabilities that come out of the employment relationship. Coverage is generally included for harassment, discrimination, wrongful discharge, failure to hire, and failure. There are no standard EPLI policies, each policy should be evaluated on its own
Employment Practices Liability Insurance protects employers against claims made by employees, former employees, or potential employees. There are no standard Employment Practices Liability policies, each policy should be evaluated to know what kind of “events” are being covered for, a policy might include the following “events”:
- Wrongful dismissal, discharge or termination of employment
- Breach of a written or oral employment contract or implied employment contract
- Employment related misrepresentation
- Wrongful failure to promote
- Violation of employment discrimination laws (including harassment)
- Wrongful deprivation of a career opportunity
- Employment related wrongful discipline
- Negligent employee evaluation
- Employment related invasion of privacy
- Employment related defamation (including libel or slander)
- Sexual or workplace harassment of any kind
- Constructive discharge of employment
- Employment related retaliation
- Employment related humiliation
- Wrongful demotion
- Negligent reassignment
- Violation of any federal, state or local civil rights laws
As soon as you start hiring employees you should have Employment Practices Liability Insurance. If an employee feels he or she has been unfairly treated, he or she can take legal action.
2. Will any of my other liability policies provide protection for employment related claims?
Insurance companies have written employment practice claims out of general liability coverage. Likewise workers’ compensation policies will no longer protect the employer from workers seeking “emotional distress” damages. The Employment Practice Liability Insurance (EPLI) is the only policy that will cover defense, indemnity and often administrative hearings and actions.