At Century II, we advise our clients that no matter how harmonious their relationship with employees may be, all employers--from major corporations to the corner grocery store--have exposure to certain liabilities that must be addressed.  In addition to clearly defined procedures for hiring, terminating, and evaluating performance, the need for Employment Practices Liability Insurance (EPLI) coverage should be reviewed.

EPLI is a type of insurance that protects the employer against claims by current, former, or prospective employees for things such as:

• Harassment
• Wrongful Termination or Hiring Practices
• Discrimination
• Workplace Tort (retaliation, defamation, emotioal distress, etc.)
• EXCLUSIONS: Wage Claims, Workers' Compensation, ERISA, ADA, Strikes & Lockouts, Contracts, WARN Act, etc.)

How great of a threat is Employment Practices Liability (EPL)? 

EPL cases are a growing concern for employers in today's workplace. Even if a complaint is not justified or is simply retaliation by a current or former employee, defending such cases is costly in both time and money. With jury awards escalating to huge amounts, a company could be financially ruined by one serious claim. Discrimination settlements and wrongful termination decisions have threatened the bottom line of many U.S. businesses.

What is the basis of EPL claims?

Over the past three decades, laws have been enacted to protect employees against discrimination on the basis of age, race, gender, disabilities, family responsibility, and other kinds of employer actions that impact employment. These laws were enacted to guarantee fair and equal employment practices for everyone in the workplace. Employment Practices Liability arises for violation of any of these laws by a company, its management, or even employees.

Most EPL claims are based on the following areas:

• Wrongful termination
• Discrimination
• Sexual or workplace harassment
• Emotional distress
• Libel or slander

The circumstances that can lead to an EPL claim are not fully controllable simply with good personnel policies and practices. Employers are realizing they are at risk from the initial interview all the through the exit interview, even if the person only worked for a very short time or was never hired. Employers need to be concerned about jokes told in the break room, terminating employees, inappropriate comments by an angry supervisor to an employee and job applicants not hired. A claim may be completely without merit, but the damage it can cause your company is real.

Policy Specifics:

We believe that the monetary damage caused by an EPL claim could be devastating to our clients. With that in mind, our EPLI policy is designed to give our clients excellent protection in the event of an EPL claim.

• $25,000 Deductible
• Each Insured Event Limit of $1,000,000
• Includes punitive damages