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.
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.