Discrimination in hiring, firing and promotions: Harassment for both sexual and non-sexual acts; Inappropriate Employment Conduct; Personal Injury such as emotional distress, mental anguish and humiliation; Retaliation.
Your past, present or prospective employees, leased employees, clients, vendors, temps, and sub-contractors
The company, members of the management team, supervisors and/or another employee.
As with all liability insurance, you can do everything right and still be sued. Most people would not knowingly discriminate. Employment and harassment laws changes regularly, EPLI insurance protects you against claims that can come from failure to promote and failure to hire. The claim might come in the form of discrimination, but the allegation will be one of negligence.
If the case does not go to trial, the average defense costs alone are $45,000. If it goes to trial, you can expect defense costs to exceed $100,000.
Up to the coverage amount purchased plus defense costs for the entire policy period regardless of the number of claims based on carrier.
If a $1 million policy is purchased, for example, that is the total amount the policy will pay for all claims including both defense and judgments. In many cases defense costs can exceed judgments. That is the value of having defense in additional or outside the limit of liability.
We can design a policy specifically for your needs.
Yes, but the policy reduces it by 50% for a wrongful termination claim if you follow the advice of an attorney approved by us prior to the termination.
If the policy has a duty to defend clause. If not, you must make arrangements to find an attorney and manage the litigation yourself. SELECT is a duty to defend policy.
If your attorneys are experts in EPLI claims, the SELECT will give consideration to using them.
If, for example, you laid someone off prior to purchasing an EPLI policy and that person sues you after you buy it, the claim might be excluded if you had knowledge of some issues. The fact is you really don’t know what may be going on with former employees. We recommend prior acts coverage in most cases.
We agree completely. Yet a number of EPLI policies contain intentional acts exclusion. It is easy to define terms on paper, but it can get real tricky in a court situation. Defining intentional acts will be up to a judge and jury. It is possible to discriminate without it being intentional: for example, you terminated a 63 year old employee for cause, and they sued for age discrimination.
Yes. Some policies have retaliatory acts exclusion. Again we can design a policy to cover your specific needs.
Many States do not permit carriers to pay punitive damages. However, when determining if we can legally insure them, we will use the individual states jurisdiction’s law where they were awarded, where the event took place or the principal location of your company, whichever is most favorable to the payment of punitive damages.
It covers claims brought by non-employees such as customers, vendors, etc., who feel they have been discriminated against. Since every firm has customers and vendors, every firm has the need for this coverage.
We recommend immediately after you become aware of it, but in any event no later than 60 days after the claim is filed.
We recommend you report it immediately. As long as it is a covered claim and you reported it properly, the policy will cover it.
At no additional cost, a Labor Law Review is available. Provided by a national law firm, it provides the type of assistance most medium size companies seek.