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employment practices liability (EPL)

  • Hard to Place Risks
  • Professional Liability insurance is a form of insurance designed to protect professionals and organizations from financial loss from negligence. Professional liability insurance is made up of four major segments: professional liability (also called "errors and omissions", "E&O", or "malpractice"), directors & officers (D&O), employment practices liability (EPL) insurance and cyber risk insurance.  This page discusses the EPL segment. 

    EPL coverage is the segment of professional liability insurance which protects the a corporation and other entities, and its employees, from legal judgments and related expenses resulting from allegations of wrongful acts committed in the employment realm.  Tennant Risk Services writes all types of EPL insurance coverage for for-profit companies and non-profit organizations.

    Driven by an explosion of employment related lawsuits, employment practices liability (EPL) coverage is now a mainstream coverage and growing professional liability segment. Recent legislative and legal changes have provided significant incentives for employees to file employment-related claims, and employers now possess an increased awareness of employment exposures and are receptive to coverage recommendations that offer greater risk protection. 

    Over the last several years, litigation related to employee complaints alleging discrimination, harassment and wrongful termination has increased dramatically. These suits can be costly-hundreds of thousands, even millions of dollars. Even an employment related claim without merit can cost an employer $20,000 - $50,000 to defend.

    EPL coverage typically provides coverage for employment claims from the following areas:

    • Wrongful employment (hiring or termination)
    • Sexual harassment
    • Discrimination

    The exposures presented by employers vary considerably. In selecting and pricing employment risks, underwriters look at a variety of factors. These include the obvious ones, such as the number of employees and the location of the operations. Other factors include the industry, employment practices, loss experience and operating characteristics.

    Because of these variables, EPL policies come in a wide range of types and are offered by a number of different insurers. EPL coverage is typically written on a claims-made basis. Often, the best price, coverage and service option may be provided by a smaller specialty insurer rather than a well-known multi-lines insurer. Because of the specialty nature of the business, EPL insurance is traditionally considered to be part of the specialty lines insurance market.

    Comprehensive, competitively priced EPL coverage is available through Tennant for all types and sizes of accounts. We can provide either stand-alone EPL coverage or EPL coverage as an extension to a D&O or other type of policy. Our focus is on firms employing less than 500 employees although we have experience with all sized organizations.

    Tennant Risk Services also designs customized programs for your homogeneous books of business.  In conjunction with our key markets, we can provide a tailored approach to underwriting, pricing and form.  We can also bring specialized risk management resources to your client group.  Please ask us about our program capabilities.

    EPL can be quoted easily, and many proposals are provided with admitted insurers.  For most accounts, we indicate terms and conditions with minimal information - reducing your work and speeding up your client response.  We also have online quoting options.  EPL coverage is a great opportunity to obtain a new account or sell the coverage to an existing account. Many entities do not have coverage now, and need this coverage.

    Tennant Risk Services is a wholesale broker providing EPL for a wide variety of entities.  We offer a broad portfolio of EPL products, in many cases customized to meet the specific needs of an organization or a book of business.  Coverage is designed to provide protection for those situations where the company or an individual is alleged to have been negligent in performing their duties, all related to employment.

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    Tennant Risk Services
    124 LaSalle Road
    West Hartford, CT 06107
    Phone: (860) 969-5201
    Fax: (860) 216-5845

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