Employment Practices Liability Insurance (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.

Furthermore, states are increasingly becoming more active in the regulation of the workplace and passing a myriad of laws in the areas of discrimination (including offering protection to classes of employees not protected under federal law), employee privacy, workers compensation, drug testing and job security.  Many of these state laws impose liability on the employer as well as on its officers and senior employees.  

Similar to general liability insurance, EPLI is now considered basic coverage for every business. In addition, higher coverage limits have recently become the norm for the investment industry because of 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 Coverage Has Become Even More Important Due to the Expansion of Employment Laws

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

The Family and Medical Leave Act

The Uniform Services Employment and Reemployment Act

The Genetic Information Nondiscrimination Act of 2008

The Lily Ledbetter Fair Pay Act of 2009

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.