Employment Practices Liability Insurance

What is Employment Practices Liability Insurance?

Employment Practices Liability Insurance (EPLI) covers employment practice related claims such as wrongful termination, discrimination, harassment, failure to hire, failure to promote, and retaliation.

Doesn’t General Liability or an Umbrella policy cover these types of losses?

No.  Employment Practices matters are not in the scope of a General Liability or an Umbrella policy.  In the payments industry, the rule of thumb is that General Liability covers generally nothing.

 

What types of companies need this type of insurance?

A company that has employees and/or independent contractors.  Average costs for settled and dismissed cases range from $10-$50K.  Cases that go to trial average $150-$200K.  States with a higher regulatory environment such as California are substantially higher.

 

Claim Scenarios

A former sales agent sues an ISO alleging breach of contract.  The ISO incurs the cost to defend said allegations and potentially the judgement or settlement.

A prospective hire sues the company after not being hired, alleging discrimination based on age, gender, race, national origin, or a disability.