The Best Public Employment Practices Liability Insurance

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  Product
  Max Coverage
  Company
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  QBE EPLI
  $10M
  
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  Great American Insurance Group Public EPLI
  $10M
  

• AIG
• Allied World Assurance Company
• CFC Underwriting
• Chubb
• eRisk Solutions
• Markel American Insurance Company
• Travelers

 

What is public employment practices liability insurance?

Employment practices liability insurance (EPLI) provides coverage from claims arising from employer-employee relationships. It protects against financial losses incurred in the litigation and settlement of wrongful employment practices, including breach of contract, discrimination, harassment, and unlawful termination. EPLI typically protects the company and its workers.

 

EPLI costs are determined by the company’s size, geographic location, nature of business, and other risk factors. Previous employment lawsuits also affect the availability and price of the insurance. EPLI is often bundled with workers’ compensation insurance, which protects employers from costs associated with work-related illnesses, injuries, and death.

 

What does public EPL insurance cover?

EPLI covers the legal costs incurred in the litigation, settlement, and judgement of a lawsuit. Some of the common claims the policy protects against include discrimination, sexual harassment, unlawful termination, breach of contract, deprivation of career opportunities, mismanagement of benefit plans, negligent evaluation, and wrongful discipline.

 

The price of EPLI premiums are generally dictated by the company’s size, location, nature of business, and risk exposure. It can also be affected by previous claims. Policies are often package with workers’ compensation insurance, which protects companies from claims arising from work-related injuries, diseases, and death.

 

What is typically excluded from an employer’s liability insurance?

While employers’ practices liability insurance protects against employment-related claims, it does not cover every situation. Most policies exclude criminal and fraudulent acts, and claims arising from layoffs, workforce restructurings, mergers and acquisitions, and factory closures.

 

Most states also rule out coverage for punitive damages although EPLI policies typically include a “most-favored jurisdiction clause” to cover for such damages. This clause indicates that coverage will be regulated by state laws that favor insuring against punitive damages.

 

How much coverage do I need?

Employment experts recommend that companies purchase EPLI, even those with solid human resource policies in place, as claims no matter how small and even if untrue could prove costly. Ideal limits can be $100,000 per employee and incident, and $500,000 per policy. Businesses with greater risk levels should purchase insurance with higher limits.

Do public officials need EPLI coverage?

Many public officials are driven by the desire to lead, serve, and make a difference in their communities. But in performing their duties and responsibilities, they are also exposing themselves to potentially career-ending risks resulting from costly legal claims. This is among the reasons why public officials should be diligent in protecting their careers, and why getting EPLI coverage is essential.

 

ELPI typically provides coverage for wrongful acts committed by public officials while performing their jobs. These include discrimination, sexual harassment, unlawful termination, and retaliation claims. EPLI policies often provide protection on a claims-made basis, meaning the employment claim must be brought against a public official or entity and reported to the insurance company by a certain date.

 

Who is public EPLI right for?

Every company needs to carry employment practices liability insurance. This includes public companies, private businesses, financial institutions, and non-profit organizations. Public officials and government agencies also benefit from getting EPLI.

 

The year in employment practices liability insurance...

2020 has caused many changes in the insurance world. From new risks to mitigate, to understanding how the pandemic would impact clients, brokers had daily challenges to overcome. Here are some of the biggest news stories in EPLI this year: 

 

"Finding a middle market EPLI carrier is getting more difficult"

The pandemic has brought new professional liability challenges forward for companies, as have other developments, such as the US Supreme Court’s historic decision in mid-June that the 1964 Civil Rights Act protects gay, lesbian, and transgender employees from discrimination based on sex. However, the impact of these events has so far been uneven across the professional liability market, according to an expert.

 

Non-profit EPL exposure likely to increase during pandemic

Layoffs and furloughs are extremely difficult in the best of times, let alone amid a global pandemic and economic slowdown. When making these emotional staffing decisions – even if they’re taken out of necessity – an expert says non-profits open themselves up to greater employment practices liability (EPL) exposure.

 

Pregnancy discrimination settlements on the rise

As pregnancy discrimination experience a significant upward trend, an expert says it’s vital for employers to observe EEOC laws and best practices.

 

How will new overtime rules impact EPL exposure?

An expert says that the challenge employers face regarding the new Fair Labor Standards Act is local interpretation and enforcement.