Do you have employees? If so, you should consider purchasing Employment Practices Liability Insurance (EPLI). Most Commercial General Liability and Umbrella policies exclude coverage for employment claims. EPLI will help protect the employer, its employees, directors, and officers for losses due to:
Discrimination, Harassment, Retaliation, Violation of the Family Medical Leave Act (FMLA), Wrongful discipline, Wrongful failure to promote, Wrongful termination, Defamation, Invasion of privacy, and False Imprisonment.
It normally does NOT provide coverage for:
Wage & hour claims, Breach of contract, Claims by independent contractors, Coverage for attorney’s fees associated with counter claims brought by the employer against the employee.
Employment claims can be very expensive to defend. Defense costs, including attorney fees, are covered by an EPLI policy. EPLI policies are normally “claims made” policies meaning that losses are only covered if they occur during the policy period and are reported within a limited time following the end of the policy period.
If you would like to discuss EPLI coverage for your business, please call Jeff.