Employment Practice Liability Insurance (EPLI)

Program Details
Opt-in / Opt-out of Coverage

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:

  • Gender
  • Sexual Harassment
  • Race
  • Age
  • Disability
  • 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.

Program Details

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:

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.

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 good practices and products proactively put in action will greatly reduce risk.

When a claim does happen, it is important that the enterprise survive defending the claim and is able to 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 like expensive minimum premiums and costly policy fees.  Premium per employee is low because the cost is spread out across all participating organizations, and there is real purchasing power in numbers.  You can expect this coverage to be discounted as much at 30-80% compared to total policy costs of going alone. In addition, AdvanStaff HR handles all elements of policy administration and annual reporting requirements to the employer.

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

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

If you would like to decline coverage, simply send an email to risk@advanstaff.com or use the form at the bottom of the page with instructions to decline coverage. Our risk manager will follow up with 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, premium is always due upfront at the beginning of the policy year when coverage is bound.  Thus, AdvanStaff HR is actually fronting the premium on your behalf. AdvanStaff HR is then recovering premium throughout the year through regular collection on the payroll invoice.

Because this coverage is so important, we have extended a pay-as-you-go program which spreads the premium payments over may pay cycles.   Even though we offer pay-as-you-go premium payment, the policy commitment is for the entire policy year. As a matter of fact, 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 no effort (other than to stay in compliance!)  It is a turn-key solution from the worksite employers perspective as AdvanStaff HR does all the back office work.

Coverage is immediately terminated upon the client’s breach of the client service agreement (CSA). Examples for reason of cancellation include: failure to fund payroll, failure to pay premium, 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 policy holder, AdvanStaff HR reserves all rights to manage all elements of the policy which include but are not limited to carriers, policy terms, premium levels, who may participate in the policy, etc. Material changes in coverage will be communicated to the Client with reasonable notice and will not be retroactive.

This EPLI coverage does not cover any events, situations, or actions occurring prior to the effective EPLI coverage start date, regardless of when the actual claim was made. If Client has outstanding labor law  issues, Client must keep current EPLI coverage in place until the pre-existing issues 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 offered coverage.

Yes.  Please contact the AdvanStaff HR Risk Management Department for a sample copy of the EPLI policy.

If you have any questions regarding this program, please contact Dianne Peace at risk@advanstaff.com or by calling 702-598-0000 ext. 250.

EPLI Coverage Election Form

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I wish to
Please share why you have decided not to participate.

Filling out the form does not guarantee coverage. A Risk Management team member will contact you shortly to discuss the details of joining the program.