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EPLI Coverage Program Details

Employment Practice Liability Insurance
(EPLI)

EPLI Coverage Program Details

We are excited to offer our risk management tool for employers, Employment Practice Liability Insurance (EPLI) coverage.  

What is Employment Practices Liability Insurance?

Employment Practices Liability Insurance (EPLI) is the type of insurance that covers businesses against claims by employees related to discrimination based on a protected class.

It provides protection against legal and other actions taken by employees, primarily related to discrimination based on:

  • Gender, sexual harassment, race, age, disability, or other protected classes

EPLI can also provide coverage for claims that the employer retaliated against an employee for asserting their legal rights under employment law.

Program Details

As your PEO, AdvanStaff HR has access to insurance programs at rates that are more competitive than most companies can obtain on their own. Based on our purchasing power and economies of scale for grouping small businesses, our clients can now qualify for programs that were previously unavailable.  EPLI is one of these programs.

Opt-Out Deadline:May 31, 2025
Effective Date: June 1, 2025
Policy Period:      One year, renewing annually
Claim Period: No acts that occurred prior to the initial coverage period are covered. No pre-existing events are covered.

A current AdvanStaff Service Agreement is required for EPLI coverage. Any claims made after contract termination are not covered under the EPLI policy, regardless of when the act occurred. The client’s worksite must purchase tail coverage for post-contract event coverage.
Aggregate Coverage:$ 2,000,000 across all participating companies
Max Coverage per Claim:$ 1,000,000
Deductible per claim:$ 50,000
Enrollment:Automatic continuation of coverage. If the worksite employer is currently participating, then no action is needed. Employers may decline coverage prior to the June 1st deadline.
Cost:Based on individual risk factors, premium levels range from $5.80 to $7.90 per employee per month, depending on industry. Premium is billed with payroll on a pay-as-you-go basis.
Minimum and partial policy year premiums:Pay-as-you-go premium billing is for convenience and budgeting purposes only. If the AdvanStaff Service Agreement is cancelled mid-way through the EPLI policy year, the premium for the remaining coverage is due.

The final premium will be estimated as follows:

The number of remaining months in the policy year
x the number of employees as of the policy renewal anniversary date,
x the PEPM EPLI billing rate.
What about tail coverage?Tail coverage is not provided.

If the worksite employer leaves the PEO relationship (cancels service with AdvanStaff HR), then EPLI coverage is also terminated. The worksite employer should ask their new insurance solution to provide “tail coverage” for any ongoing issues or new issues that may arise.
Excluded StatesCalifornia is excluded from coverage. Due to the employment climate in CA, we highly recommend obtaining a policy on your own.

*AdvanStaff HR reserves the right not to offer coverage to all employers.

You may request a sample policy document from our risk management department to review all policy details.  A brief summary of the policy terms is provided below.

EPLI does NOT usually cover:

  • Any issues related to the National Labor Relations Board (“NLRB”) or claims related to the National Labor Relations Act (NLRA). EPLI is designed to cover claims related to employment practices, such as discrimination, harassment, and wrongful termination. However, it typically excludes claims related to labor laws, like the NLRA.  EPLI policies primarily address employee-related claims arising from an employer’s conduct towards its own employees. The NLRA governs the relationship between employers and labor unions, focusing on issues like union organizing, collective bargaining, and unfair labor practices. 
  • Claims made regarding wage & hour violations. EPLI will not cover payroll liabilities for employees who were not paid or were paid incorrectly.

Most EPLI policies specifically exclude claims arising under the NLRA, as well as other labor laws such as the Worker Adjustment and Retraining Notification Act (WARN), the Occupational Safety and Health Act (OSHA), and the Employee Retirement Income Security Act (ERISA). 

The cost of EPLI coverage depends on your type of business, the number of employees you have, the state in which you operate and various risk factors (such as whether your company has been sued over employment practices in the past.) The policy will reimburse your company against the costs of defending a covered lawsuit in court and for judgments and settlements (less the deductible.)  The policy covers legal costs whether your company wins or loses the suit. Policies also typically do not cover punitive damages, civil fines, or criminal fines. Liabilities covered by other insurance policies, such as workers’ compensation, are excluded from EPLI policies.

To prevent employee lawsuits, employers must educate managers and employees to minimize problems in the workplace:

  • Develop effective hiring and screening programs to prevent discrimination in the hiring process.
  • Post corporate policies throughout the workplace and include them in employee handbooks, so that everyone is clear about the policies.
  • Show employees what steps to take if they are the object of sexual harassment or discrimination by a supervisor. Ensure supervisors are aware of the company’s stance on unacceptable behaviors.
  • Document everything that occurs and the steps your company takes to prevent and resolve employee disputes.

Frequently Asked Questions:

Premium is collected on a per-employee-per-month (PEPM) basis via the payroll invoice. PEPM premium is based on location, SIC code, employer experience or several other factors.

For budgetary purposes, we will divide the monthly premium by the number of payrolls in the month.

If the client terminated AdvanStaff HR services, then the expected annual premium will be due.

No. However, deductibles can be reduced by reporting claims quickly from the date of occurrence.

Employment-related claims are on the rise.  You hired AdvanStaff HR to help manage risk and to provide risk management services and guidance.  EPLI coverage is one of many affordable tools offered by AdvanStaff HR that protects the business from unforeseen and often uncontrollable situations and consequences of employee-related behavior.  As you know, there is no way to eliminate risk, but implementing good practices and products proactively can significantly reduce it.

When a claim does happen, it is essential that the enterprise can survive defending the claim and pay the penalties levied.  We HIGHLY encourage all employers to participate in this coverage.  All employers are financially and legally responsible for the behavior of their managers and staff.  The cost of this coverage is very small relative to the benefit.

The EPLI program eliminates many layers of costs, such as expensive minimum premiums and high policy fees.  

The premium per employee is low because the cost is spread across all participating organizations, and there is real purchasing power in numbers.  You can expect this coverage to be discounted by 30-80% compared to the total policy costs of going alone.

In addition, AdvanStaff HR handles all elements of policy administration and annual reporting requirements to the employer and will help assist the EPLI legal counsel to defend the claim.

Yes.  Even though we highly discourage declining coverage, participation is not mandatory.

Employers who decline coverage will not be able to opt in until the next policy anniversary.  At that time, AdvanStaff HR will underwrite and evaluate the risk associated with adding your company to the policy and provide an offer for coverage at the appropriate premium level.

If you would like to decline coverage, please send an email to risk@advanstaff.com or use the form at the bottom of the page, following the instructions to decline coverage. Our risk manager will contact you directly.

Because this coverage is so affordable, we highly recommend all companies participate.  However, some clients may choose to carry their own EPLI coverage.  In that case, we fully understand.

No.

As is customary with these types of policies, the premium is always due upfront at the beginning of the policy year when coverage is bound.  Thus, AdvanStaff HR is fronting the premium on your behalf. AdvanStaff HR then recovers premiums throughout the year through regular collections on the payroll invoice.

Because this coverage is so important, we have extended a pay-as-you-go program that spreads the premium payments over many pay cycles.   Even though we offer pay-as-you-go premium payment, the policy commitment is for the entire policy year. If you cancel all services with AdvanStaff, we will need to collect the unpaid portion of the premium at termination/

The EPLI program through AdvanStaff HR is affordable, high-value, and requires no extra effort (other than staying in compliance!)  It is a turnkey solution from the worksite employer’s perspective, as AdvanStaff HR handles all the back-office work.

Coverage is immediately terminated upon the client’s breach of the client service agreement (CSA). Examples of reasons for cancellation include: failure to fund payroll, failure to pay premiums, or any other breach or cancellation of the client service agreement.

AdvanStaff HR can also terminate coverage if the Employer fails to adhere to policies and guidance provided by our internal HR department.

Employers with their own EPLI coverage who wish to transfer coverage to this program should ensure all existing or potential matters are closed, as no coverage is provided for any claims reported or incurred before the coverage inception date.

Coverage on this policy is not retroactive.  Please consult your insurance agent to determine if changing is advantageous to you and if purchasing tail coverage would be advisable.

Premium or policy terms could change every policy anniversary year based on market conditions, total policy performance, or many other factors.

The policy anniversary date is every June 1.  

As the master policyholder, AdvanStaff HR reserves the right to manage all elements of the policy, which include, but are not limited to, carriers, policy terms, premium levels, and who may participate in the policy.

Material changes in coverage will be communicated to the Client with reasonable notice and will not take effect retroactively.

This EPLI coverage does not cover any events, situations, or actions occurring before the effective EPLI coverage start date, regardless of when the actual claim was made. If the Client has outstanding labor law issues, they must maintain current EPLI coverage until the pre-existing problems are resolved. This policy will not cover pre-existing matters.

No.  Not all employers are eligible.  Offers for coverage are based on many risk factors, and not all worksites are provided coverage.

Yes.  Please get in touch with the AdvanStaff HR Risk Management Department for a sample copy of the EPLI policy.

If you have any questions about this program, please contact Dianne Peace at risk@advanstaff.com or call 702-598-0000, extension 250.

OPT IN / OUT of Coverage (Election Form)

I wish to
Please share why you have decided not to participate.
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Completing this form does not guarantee coverage. A Risk Management team member will contact you shortly to discuss the details of joining the program.