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 insurance type that covers businesses against claims by employees related to discrimination based on protected class.
It provides protection against legal and other actions taken by employees, primarily related to discrimination based on:
- Sexual Harassment
- 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.
Any issues related to National Labor Relations Board (“NLRB”)
Claims made relating to wage & hour violations
You may request a sample policy document from our risk management department to review all policy details. A limited summary of policy terms is listed below.
As your PEO, AdvanStaff HR has access to insurance programs at more competitive rates than most companies would have access to on their own. Based on our purchasing power and economies of scale for grouping together small businesses, our clients can qualify for programs not previously available. EPLI is one of these programs.
Opt-Out Deadline: May 31, 2023 Effective Date: June 1, 2023 Policy Period: One-year, renewing annually Claim Period: 1. No acts that occurred prior to the initial coverage period are covered. No pre-existing events are covered. 2. 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 worksite must purchase tail coverage for post contract event coverage. Aggregate Coverage: $ 2,000,000 across all participating companies Max Coverage/Claim: $ 1,000,000 Deductible per claim: $ 50,000 if reported within 30-days of claim (Client is responsible for deductible expenses) If a claim is reported within (30) days of when it was first made, the applicable Self-Insured Retention will reduce by ten percent (10%). If the Insured consent to a settlement of a Claim within (20) days of the first request by Underwriters to consent and the settlement is accepted by the claimant, then the applicable Self-Insured Retention shall be retroactively reduced by ten (10%). Any consent to the same or another settlement after such time shall not reduce the Self-Insured Retention. 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, Premiums levels range from $4.80 to $6.80 per employee per month based on industry and will be billed with payroll on a pay-as-you-go basis. Minimum Premium: Pay-as-you-go premium billing is for convenience and budgeting purposes only. If the AdvanStaff Service Agreement is cancelled mid EPLI policy year, the premium for the years coverage is due. Final premium will be estimated as follows: the remaining number months in the policy year multiplied by the number of employees at the policy renewal anniversary date. What about tail coverage: Based on the carrier's trend, AdvanStaff will "wait & see" on how to handle the next renewal. It is entirely possible we recommend client obtain their own coverage. We would recommend treating this year as tail coverage, and talking to your agent about starting new coverage now if you are concerned about this policy terminating. Excluded States: Coverage under this policy is not available in California.
*AdvanStaff HR reserves the right to not offer coverage to all employers.
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 pay for punitive damages or civil 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:
- Create effective hiring and screening programs to avoid discrimination in hiring.
- Post corporate policies throughout the workplace and place them in employee handbooks so policies are clear to everyone.
- Show employees what steps to take if they are the object of sexual harassment or discrimination by a supervisor. Make sure supervisors know where the company stands on what behaviors are not permissible.
- Document everything that occurs and the steps your company is taking to prevent and solve employee disputes.
Frequently Asked Questions:
If you have any questions regarding this program, please contact Dianne Peace at email@example.com or by calling 702-598-0000 ext. 250.