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?
EPLI covers businesses against claims by workers that feel their legal rights as employees of the company have been violated.
The number of lawsuits filed by employees against their employers has been rising. No company is immune to such lawsuits and we recognize that smaller companies now need this kind of protection.
EPLI provides protection against many kinds of employee lawsuits, including claims of:
- Sexual harassment
- Wrongful termination
- Breach of employment contract
- Negligent evaluation
- Failure to employ or promote
- Wrongful discipline
- Deprivation of career opportunity
- Wrongful infliction of emotional distress
- Mismanagement of employee benefit plans
EPLI does not generally provide protection from the following violations:
- Any issues related to National Labor Relations Board (“NLRB”) charges or violations
- Claims made relating 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: June 30, 2021 Effective Date: June 1, 2021 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 $ 75,000 for specific industries: Auto Dealers, Law Firms, Night Clubs $ 75,000 Based upon, arising out of, or in any way involving any termination of employment occurring at any time where such termination occurred or occurs when or after the Company or Organization: a. Files or is placed in bankruptcy, receivership, liquidation, or reorganization; b. lays off more than ten percent (10%) of its total number of employees. c. is reported 30 days after 30-days of claim. 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 30th deadline. Cost: Based on individual risk factors, Premiums levels range from $3.50 to $5.50 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 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 first place:
- 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.