Employment Practices Liability Insurance

By Peggy Larsen

Recent court rulings show that employment practices lawsuits can range from $18,000 to upwards of $135,000. A Salt Lake City based media company was ordered to pay $65,000 for failing to provide reasonable accommodations to help a sales executive continue his sales career as his symptoms of Parkinson’s disease worsened. The company’s actions were in violation of the Americans with Disabilities Act of 1991.

Qualified WCF policyholders now have the opportunity to purchase employment practices liability insurance (EPLI) as an additional coverage and benefit of being insured with WCF. The EPLI coverage is being made available to WCF customers through a partnership with Univantage Insurance Solutions and a leading insurance provider, Beazley Insurance Company, Inc. (rated A by A.M. Best).

What is EPLI?

Employment practices liability insurance provides coverage for employment practices, including lawsuits arising from:

§  Discrimination

§  Sexual harassment

§  Wrongful discipline

§  Negligent evaluation

§  Wrongful termination

§  Failure to employ or promote

§  Breach of employment contract

§  Deprivation of career opportunities

§  Infliction of emotional distress

Why EPLI Insurance?

Six out of every ten employers in the U.S. have faced an employment related lawsuit in the last five years. Legal defense costs can reach tens of thousands of dollars per employment case. The average legal bill for defending a groundless employment case is estimated to be $20,000. Nationwide, more than 40 percent of employment related lawsuits are brought against employers with fewer than 100 employees.

What Does an EPLI Policy Include?

Regardless of the size of your company, employment lawsuits put your organization at risk. For a few dollars a month, you can protect your organization against employment related lawsuits. The standard policy coverage provides for legal defense and losses up to $100,000 for employment suits and claims.

In addition, the EPLI coverage includes unique access to legal experts through The Best Practice Helpline and topical EPLI information from our electronic newsletter, Univantage Helpforce. These powerful resources provide employers with up-to-date information on industry-best practices, along with specific one-on-one legal assistance for employment practices related matters. Both these resources are provided to reduce employer’s risk and exposure to employment-related suits.

What makes this product different from other EPLI available in the marketplace is that it is designed specifically for the smaller employer. It is affordable and provides higher limits than many other products sold in this market. There is no minimum premium. The unique helpline and newsletter that automatically accompany the policy were developed to provide education to employers to help them understand and reduce significant risks and exposure to employment practices liability.

Because the EPLI coverage is sold in combination with your WCF workers compensation insurance policy, complementary advantages are provided to the employer - ultimately providing the potential to reduce risks in both the workers compensation and employment practices areas.

How Much Does An EPLI Policy Cost?

With WCF’s ability to offer EPLI with workers compensation coverage, even the smallest employers will be able to afford coverage. WCF policyholders can obtain and EPLI policy for as little as $40 per employee. The standard policy includes $100,000 in coverage with a $2,500 deductible. Options for other deductible amounts and higher limits are available on request. There is no minimum policy premium.

How Do I Obtain an EPLI Policy?

EPLI coverage can be provided to all qualifying WCF policyholders with less than 50 employees. You can opt-in for this unique insurance offering on an annual basis at the same time you renew or place your workers compensation coverage with WCF. No application is required.

For more information call Univantage at 888.864.8268. Our agent will be happy to discuss standard coverage pricing along with alternatives for employers seeking coverage from higher limits, deductibles, etc.

Peggy Larsen is the Senior Vice President of Marketing at Workers Compensation Fund and the President of Univantage Insurance Solutions. WCF offers ongoing safety training and UMA members are eligible for a 5% premium discount through a partnership with WCF. Visit www.wcfgroup.com for more information.