Employment Practices Liability Insurance – The Ultimate Guide

Age discrimination involves treating an applicant or employee less favorably because of his or her age

Disability discrimination occurs when an employer or other entity covered by the Americans with Disabilities Act, as amended, or the Rehabilitation Act, as amended, treats a qualified individual with a disability who is an employee or applicant unfavorably because she has a disability

The Equal Pay Act requires that men and women in the same workplace be given equal pay for equal work

Treating someone unfavorably due to a person’s genetic information and/or the genetic tests of family members

Harassment is unwelcome conduct that is based on race, color, religion, sex (including pregnancy), national origin, age (40 or older), disability or genetic information

National origin discrimination involves treating people (applicants or employees) unfavorably because they are from a particular country or part of the world, because of ethnicity or accent, or because they appear to be of a certain ethnic background (even if they are not).

Pregnancy discrimination involves treating a woman (an applicant or employee) unfavorably because of pregnancy, childbirth, or a medical condition related to pregnancy or childbirth.

Treating someone (an applicant or employee) unfavorably because he/she is of a certain race or because of personal characteristics associated with race (such as hair texture, skin color, or certain facial features). Color discrimination involves treating someone unfavorably because of skin color complexion.

Treating a person (an applicant or employee) unfavorably because of his or her religious beliefs.

Laws prohibit punishing employees or applicants for asserting their rights to be free from employment discrimination

Treating someone (employee and/or applicant) unfavorably based upon that person’s sex, and gender identity.

Harassment can include unwelcome sexual advances, requests for sexual favors, and/or offensive remarks about a person’s sexual orientation

Most businesses are eligible to purchase EPLI with “standard rates” and include some of the following:

• Physician Offices
• Retail and wholesale stores
• Restaurants
• Offices
• Motels
• Machine shops and light manufacturing operations
• Auto repair garages
• Auto dealerships
• Contractors

However, most carriers find certain businesses to be higher risk, and will not offer Employment Practices Insurance, here are a few of those:

• Ambulance service, first aid or rescue squads
• Career and vocational consulting firms
• Consultants
• Employment agencies, including employee leasing firms and temp agencies
• Fire departments
• Government offices
• Municipalities
• Private membership golf and country clubs
• Schools and camps associated with schools

Employment Practices Liability Insurance rates are typically presented and rated Per Employee.

Insurance Providers differentiate per employee pricing in accordance to whether of not the employee is considered “Full Time” or “Part Time”.

Full-Time employees offer a greater risk than part-time employees, so a full-time employee carries a premium higher than a part-time employee.

Most insurance carriers offer the following coverage limits:

• $10,000
• $25,000
• $50,000
• $100,000
• $250,000
• $500,000
• $1,000,000
• $2,000,000

The higher the coverage limit, the higher the premium

Most insurance carriers offer the following deductible options

• $5,000
• $10,000
• $25,000

The higher the deductible, the lower the premium.

Optional EPLI Coverage – Third-Party Employment Practices Liability

Third-Party EPL coverage provides coverage for charges brought by customers, vendors or clients

You can expect an approximate additional premium charge of 15% of the base EPL premium