Employment Practices Liability Insurance

This insurance (also known as Investment Adviser EPLI) addresses claims made by employees, former employees or potential employees concerning discrimination (age, sex, race, disability), wrongful termination, sexual harassment, and other employment-related allegations. It covers the investment advisory firm, its directors, officers, employees and former employees.

Why do I need Employment Practices Liability Insurance?
Cases against employers are on the rise and mounting a defense to an employment practices lawsuit can be extremely expensive. There may even be potentially crippling losses in productivity pending an outcome. Since employers have no choice but to defend themselves against allegations both in and out of the courtroom, an increasing number of our clients are purchasing EPLI. Similar to general liability insurance, EPLI is now considered standard by the industry. In addition, higher coverage limits have recently become the norm for the investment industry due to the large compensation packages of portfolio and other professionals.

What coverage does a typical stand alone claims-made EPLI policy provide?

Wrongful Termination

• Rights violations during the termination process
• Failure to exercise duty and care during a termination

Sexual Harassment

• Gender as a condition of employment
• Gender as a basis for employment decisions
• Work environment that thwarts performance

Discrimination

• Termination, demotion, failure/refusal to hire or promote on any basis that violates the law

Parties Covered

• Entity
• Directors and Officers
• Employees
• Former Employees

EPLI's Importance is Heightened Further By Recent Changes in Employment Law
Consider the following:

The Civil Rights Act of 1964 (Title VII) as amended in 1991
Under federal law, jury trials are now available to employees who seek recovery for workplace discrimination

The Americans with Disabilities Act of 1990
Expanded prohibition against workplace discrimination to millions of Americans who are classified as disabled

Supreme Court Ruling in Teresa Harris Case
An employee is no longer required to prove psychological harm to win a harassment case

Additional Laws Influencing Employment Practices
Pregnancy Discrimination Act of 1978
Age Discrimination Act of 1967
Equal Pay Act of 1963

Click here to download an Application for Employment Practices Liability Insurance.

Click here to download a Loss Prevention Guide for Employment Practices Liability Insurance.

Click here to download Employment Practices Liability Insurance Claim Scenario 1.

Click here to download Employment Practices Liability Insurance Claim Scenario 2.

Click here to download Employment Practices Liability Insurance Claim Scenario 3.

Click here to download Employment Practices Liability Insurance Claim Scenario 4.