Employment Practices Liability

What is Employment Practice Liability Insurance (EPL)?

EPL insurance protects your firm from allegations stemming from discrimination, harassment, or another type of wrongful conduct in the course of employment that is in violation of federal, state or local law, common or statutory.

What general types of claims may be covered by an EPL policy?

Generally, three areas of employment related claims are covered:

1. Sexual harassment and hostile work environment
2. Discrimination allegations (e.g., race, age, sex, religion, nationality, family, disability and pay, etc.)
3. Wrongful termination situations

Doesn't professional liability insurance cover employment-related claims?

Professional liability policies almost always include an “insured vs. insured” exclusion that eliminates coverage by employees against employers. In addition, nearly all policies include specific employment practice liability exclusion.  Finally, the definition of “professional services” precludes coverage because employees are not clients, nor are they eligible recipients of covered professional services activities.