An EPL policy is usually written on a claims made basis. You will want to make sure there is an extended reporting period or retroactive provisions. Also make sure the definition of “loss” includes damages, settlements, judgements, defense costs, and front and back pay.
Customer
- Every church, non-profit, or organization with employees
Coverage
- Discrimination
- Wrongful termination
- Failure to employ or promote
- Harassment (sexual or otherwise)
- Failure to provide equal opportunity of employment
- Retaliation
- Infliction of emotional distress
- Violation of employee’s civil right
Cost Factors
- Size or type of organization
- Amount of debt
- Insurance limits
- Risk management techniques
Claim Examples
- Breach of fiduciary duty loss
- Misuse of organization funds – including non-profits
- Fraud
- Failure to comply with workplace laws
- Lack of corporate governance
Since Lloyd’s of London offered the first Employment Practice Liability policy in the 1980’s, globally, organizations or all types and sizes have been affected by a surge in employment related litigation. Today’s organizations are open to ever-higher legal damage awards arising from employment practices violations. The average cost of defending and EPLI claim was roughly $160,000 in 2019.