Employment Practices Liability (EPL) insurance covers the insured company, its directors and officers, and its employees for liability arising from three types of exposure:

1. Wrongful termination is the number one cause of loss. Don't fire an employee without good cause. Make sure you have a VERY good reason for the termination and document EVERYTHING thoroughly before you do fire.
2. Discrimination means violation of civil rights, the Age Discrimination in Employment Act, the Americans with Disabilities Act, or other federal laws on discrimination.
3. Sexual harassment — "Unwelcome [sic] sexual advances...as a condition of employment...are illegal."

The explosion of employment practices litigation in the 1980's led insurers to insert employment-related practices exclusions in Commercial General Liability, Workers' Compensation, Employers' Liability, Excess and Umbrella Liability Policies. As a result, employers must buy separate EPL insurance...or retain the exposure.

We can help explain all of this in detail and customize it for your specific needs. Give us a call today.