WHAT IS EMPLOYMENT PRACTICES LIABILITY (EPL) INSURANCE?

A policy used to cover your costs arising from some of the most common employment-related lawsuits, including the following:

  • Discrimination
  • Harassment
  • Retaliation
  • Violation of the Family & Medical Leave Act (FMLA)
  • Wrongful Discipline
  • Undue Failure to Promote
  • Unjust Termination

IS EPL COVERAGE NECESSARY?

For contractors, there is a heightened risk of EPL claims arising from third parties (e.g., customers or other companies’ employees). These claims arise if an employee of Company A allegedly harasses an employee of Company B or a member of the general public. Any EPL policy purchased by a firm in the construction industry should include coverage for third party claims.

WAYS TO CONTROL RISK?

Evidence of desirable employment practices and policies may be required for an EPL policy, and will certainly help defend against a suit. The following policies can help reduce your risk. RBN can provide you with sample forms for many of these, and we can also provide access to relevant HR expertise.

  • Sexual Harassment
  • Equal Opportunity
  • Termination
  • Internet Usage / Employee Privacy
  • Internal Job Postings
  • Discrimination
  • Disability & Accommodations
  • Employee Discipline
  • Performance Evaluations
  • Leaves of Absence
  • Hiring & Interviewing
  • Resolution/Arbitration

COVID & EPL COVERAGE

COVID has heightened the risk for EPL claims. Many companies have been forced to lay off or furlough employees, which frequently results in allegations of discrimination or other improper employment decisions. Additionally, with many employers making individualized decisions about accommodations for health and family situations, there has been a rise in allegations of disparate or unfair treatment.

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