Discrimination/Employment Practices Liability

Employment practices liability insurance (EPLI) typically covers a range of claims related to various employment practices issues. While coverage can vary depending on the specific policy and insurer, here are some common areas that EPLI policies may cover:

• Discrimination: Claims alleging discrimination based on factors such as race, gender, age, disability, religion, sexual orientation, or other protected characteristics.
• Harassment: Claims of harassment, including sexual harassment, hostile work environment, or other forms of harassment prohibited by law.
• Wrongful Termination: Claims alleging wrongful termination, including termination based on discriminatory reasons or in violation of employment contracts or public policy.
• Retaliation: Claims of retaliation against employees who engage in protected activities, such as whistleblowing or filing discrimination complaints.
• Employment Practices Violations: Claims related to violations of employment-related laws and regulations, such as the Fair Labor Standards Act (FLSA), Family and Medical Leave Act (FMLA), Americans with Disabilities Act (ADA), or other state and federal employment laws.

Failure to Promote:

• If an employee alleges that they were unfairly passed over for a promotion based on discriminatory reasons (such as race, gender, age, etc.), an EPLI policy may provide coverage for legal expenses, settlements, or judgments arising from such claims.
• EPLI coverage may extend to claims of wrongful denial of promotion, especially if it is alleged to be based on factors prohibited by employment laws.

Failure to Hire:

• If a job applicant claims they were not hired due to discriminatory practices or violation of employment laws, EPLI coverage may come into play.
• This coverage can apply if an applicant alleges discrimination based on protected characteristics or claims that the hiring process violated applicable laws.
• Mismanagement: Claims related to mismanagement of employee benefits, wrongful demotion, negligent evaluation, or other managerial decisions that result in harm to employees.
• Legal Defense Costs: Coverage for legal defense costs, including attorney fees, court costs, and settlements or judgments resulting from covered claims.
• Third-Party Liability: Some EPLI policies may also provide coverage for claims brought by third parties, such as customers, clients, vendors, or other non-employees, alleging employment practices violations.

Contact Us

It’s important to review the specific terms and conditions of an EPLI policy to understand the scope of coverage, any exclusions, and the limits of liability. Contact ISE Insurance Services today to find the right protection for your business.