EPLI
In today’s litigious society, businesses are more likely to be sued by an employee than experience a fire in the workplace. Employers continue to face an increasing number of employment-related claims and financial damages for questionable conduct including discrimination, wrongful termination, retaliation, sexual harassment and breach of employment contract. About 25 percent of employment matter cases result in a judgment of $500,000 or more. These types of specific employment claims fall outside the general scope of liability insurance policies, leaving companies and employers exposed to a number of financial risks. Allow Imperial Insurance Agency to protect your financial risks resulting from wrongful employment-related claims.
Important Facts about EPLI
The Equal Employment Opportunity Commission interprets and enforces the federal laws that govern your client’s liability to their employees, but there are also state statutes that apply. Employment Practices Liability Insurance is a necessary safeguard for most small-business.
Claims-made vs. Occurrence
EPLI can be “claims-made” or “occurrence” coverage. Claims-made coverage is the more common policy. Your policy must be active when the incident occurred and when the claim is filed. The only time this isn’t true is if the policy has a retroactive date, which allows coverage for an incident prior to the start of the policy. When EPLI is set up on an “occurrence” basis, you maybe covered for events that happen during the policy period regardless of when the claim is filed. Even when a claim is reported to the carrier outside of the policy period, if the event occurred while the coverage was in effect, you should be covered.
