EPLI policies are designed to address claims arising from the employment relationship. Depending on the policy and available endorsements, coverage may include:

Discrimination

Claims alleging that an employee or applicant was treated unfairly because of a protected characteristic.

Wrongful Termination

Claims alleging that an employee was improperly terminated or forced to leave the company.

Harassment

Claims involving alleged workplace harassment, including sexual harassment and other forms of prohibited workplace conduct.

Retaliation

Claims alleging that an employee experienced adverse treatment after reporting discrimination, harassment or another protected workplace activity.

Failure to Hire or Promote

Claims alleging that an applicant or employee was denied an employment opportunity improperly.

Wrongful Discipline

Claims arising from allegations that an employee was improperly disciplined, demoted or otherwise treated unfairly.

Employment-Related Defamation

Certain policies may provide coverage for claims involving alleged employment-related libel, slander or defamation.

Most dealers will get Open Lot coverage along with Garage Keepers and Garage Liability to take care of gaps in coverage. Each insurance company’s approach to Dealer’s Open Lot coverage will vary, so get an expert to help you.

Depending on the policy, Employment Practices Liability Insurance may provide coverage for claims involving:

• Wrongful termination
• Employment discrimination
• Sexual harassment
• Workplace harassment
• Retaliation
• Failure to hire
• Failure to promote
• Wrongful discipline or demotion
• Breach of employment contract
• Employment-related defamation
• Invasion of privacy
• Wrongful deprivation of a career opportunity
• Negligent employment practices

Coverage varies by insurance carrier and policy, so it is important to understand exactly what your policy covers and what exclusions may apply.

Employment Practices Liability Insurance and Workers’ Compensation Insurance protect against very different types of risk.

Workers’ Compensation generally addresses employee injuries or illnesses arising from employment. EPLI addresses certain claims involving the employment relationship, such as allegations of discrimination, harassment, retaliation or wrongful termination.

Having Workers’ Compensation coverage does not mean your business is protected against employment practices claims.

Likewise, EPLI does not replace Workers’ Compensation, General Liability or other insurance required to protect your business

Employment-related claims can come from more than just current employees.

Depending on the policy, claims may be brought by:

• Current employees
• Former employees
• Job applicants
• Managers or other covered individuals
• Certain independent contractors or temporary workers

Employment practices liability policies can also provide protection for the company and, depending on the policy, directors, officers, managers and other employees.

EPLI policies contain exclusions and limitations, and coverage varies between insurance carriers.

Common exclusions can include certain wage-and-hour claims, workers’ compensation claims, bodily injury, property damage, intentional or criminal acts and other liabilities covered by separate insurance policies.

Some policies may offer endorsements or limited coverage for specific exposures. Because policy language can vary significantly, AutoRisk can help you understand the coverage, exclusions, deductibles and limits available for your business.

Employment Practices Liability Insurance is commonly written on a claims-made basis. This means the timing of the claim and the policy period can be particularly important when determining whether coverage applies.

Businesses should pay close attention to:

• The policy effective and expiration dates
• Retroactive dates
• Prior acts coverage
• Reporting requirements
• Extended reporting provisions
• Policy limits and deductibles
• Defense provisions
• Applicable exclusions and endorsements

Our team can help you evaluate these provisions when reviewing your EPLI options.