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August 22, 2013

What is Employment Practices Liability Insurance? 

 

Employment Practices Liability Insurance (EPLI) provides protection from lawsuits due to wrongful termination, sexual harassment, discrimination, invasion of privacy, breach of contract, emotional distress, retaliation, and wage and hour law violations.

 

Some of the laws and protection that come under Employment Practices Liability are the Title VII of the Civil Rights Act of 1964, the American and Disabilities Act of 1990, Civil Rights Act of 1991, the Age Discrimination in Employment Act of 1967, and the Family and Medical Leave Act.

 

"Some of the more common claims we see are based on wrongful termination, retaliation, wage and hour, sexual harassment, and discrimination," said Philip S. Bilello, CIC, owner of Total Management Corporation, a NY-based independent insurance agency. "Most clients are under the impression that their general liability policies provide Employment Practices Liability coverage. However, the fact is this type of coverage is specifically excluded from these forms; that's why securing Standard Employment Practices Liability Insurance is so important. In addition, any business or organization that deals with the public on a daily basis should also have third-party EPLI coverage." The Third Party coverage extends to cover against lawsuits brought by customers, clients, vendors and suppliers.

 

The cost of insuring a business for EPLI coverage depends on a number of factors, including business size, total number of employees, industry type, hiring and firing practices, employee turnover percentages, and whether rules and practices are in place.

 

Coverage is normally written on a "claims made" basis with cost of defense included in the limit of liability. Policies will have a deductible and a pending and prior acts date. Prior Acts coverage can be negotiated and should extend as far back as possible in order to protect you against claims that occurred in the past and are now just being brought to your attention.   

 

In addition to securing employment practices liability insurance, Total Management Corporation recommends that business owners have a comprehensive employee handbook that has been reviewed and is in compliance with your State Employment laws. Most insurance carriers will provide a Human Resources element as an added service, which will assist you in defining various policies and formulating a complete employee handbook.

 

To learn more, contact one of our insurance specialists at Total Management Corporation at our offices on Long Island (516-292-4141) and New York City (212-971-7230).

 

About Total Management Corporation

Total Management Corporation (TMC) is a Hempstead, NY-based independent insurance agency that provides customized personal, business, not-for-profit/social service, and life & health insurance coverage from major insurance carriers. For more information, visit www.tmccompany.com. 

 

Total Management Corporation
14 Front Street, Hempstead, NY 11550
Tel: 516-292-4141
Fax: 516-292-4170