Employment Practices Liability Insurance, or EPLI as it is often referred to, is a type of liability insurance covering wrongful acts arising from the employment process. Although EPLI is available as a stand-alone coverage, it is also frequently sold as part of a management liability package policy In addition to providing directors and officers (D&O) and fiduciary liability insurance; management liability package policies afford the option to cover employment practices liability (EPL). Garcia Lorenzo & Associates may provide a quote for this very important and inexpensive way to protect your business.
EPLI policies can provide coverage a result of:
Defamation, Invasion of Privacy, Failure to Promote, Deprivation of a Career Opportunity, and Negligent Evaluation
Defense Cost, although the forms contain “shrinking limits” provisions, meaning that the insurer payment of defense costs—which are often a substantial part of a claim—reduce the policy’s limits. This approach contrasts with commercial general liability (CGL) policies, in which defense is covered in addition to policy limits.