As the headlines continue and insurance carriers continue to pay out, Employment Practices Liability Insurance, (or EPLI), has become an issue to many companies, regardless of their size.

Many companies are considering EPLI to cover executives who harass employees, or employees who harass other employees.  This is not only an issue with large firms but can be an issue with small, local businesses as well.

While EPLI coverage can vary, generally, EPLI can help a business cover the costs of litigation, especially litigation that pertains to sexual harassment, racial discrimination, and wrongful termination. Specifics of EPLI should always be discussed with your insurance professional, but it’s important to know it can help cover the costs of a contentious or costly lawsuit.

The parameters and specifics around EPLI, again, will vary according to the carrier and specific overage needs. However, we encourage you to consider the following when researching your need for EPLI.

• Limits; configuring which limit is correct for your business
• Wage & Hour sub-limits; defense available
• Duty to defend with the insured having the right to assume the defense
• Broad definition of insured, including the company, employees, and any leased employees
• Third party liability coverage
• Option for cost of defense outside of the “limit” on most small accounts
• Risk Management programming available
• Full prior acts
• Insured Event Coverage: discrimination, sexual harassment, wrongful termination/demotion/discipline/failure to hire/promote/fire/demote, wrongful infliction of emotional distress, false imprisonment/detention, malicious prosecution, libel, slander, defamation of character, invasion of privacy
• Pricing of the insurance premium

At Ramey King, we urge you to take the time to review your company’s need for this coverage before coverage is needed.