OVERVIEW

Employment Practices Liability Insurance responds to claims made by employees, former employees and potential employees, alleging wrongful termination, discrimination for age, sex, race, disability or sexual harassment among other employment related allegations.

Employment Practices Liability Insurance, often referred to as EPLI coverage, has evolved over the past decade and more employers are aware of its importance simply through high-profile court cases that have awarded millions of dollars to employees. In 1991, the United States Congress passed the Civil Rights Amendments, which contained several provisions. One key provision among them was the requirement of a jury trial for most alleged types of work-related discrimination, if desired by the plaintiff employee. This set the tone for the expansion of Employment Practices Liability Insurance.

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Address AMBA 1050 Connecticut Ave, N.W. Suite 700 Washington, DC 20036
Phone 800-978-6273
Email [email protected]

FAQs

Answers about the plan, including eligibility, options, enrollment, customer service and more.

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Isn’t this covered under a general liability policy?

With rare exceptions, claims resulting from the above types of offenses are not covered under general liability policies. First, the majority of these acts are not accidental, so they are not considered occurrences. Also, the injuries they cause do not constitute bodily injury or personal injury as defined under most general liability forms.
Isn‘t this covered under my workers’ compensation policy?

Workers’ compensation policies specifically exclude coverage of employment practice issues. A sample exclusion from one policy states: damages arising out of coercion, criticism, demotion, evaluation, reassignment, discipline, harassment, humiliation, discrimination, against or termination of employee, or personnel practices, policies, acts or omissions are excluded.
I’m a good manager and have a good relationship with my employees. My employees wouldn’t bring a claim against me.

Maybe so, but many businesses, both small and large, are more likely to be sued by employees than third party or customer.
Employment practices claims don’t apply to my law firm because we have fewer than 15 employees.

Not so. In fact, the accusation of a wrongful discriminatory act is cause for legal action regardless of whether you have one employee or one hundred.
I use contract employees, so I have no employment practice liability exposure.

Again not so. Employer has been broadly interpreted by case law to include any personnel who works primarily in your place of business, regardless of whether or not they are directly on your payroll.