Products
Employment Practices Liability Insurance
Employers have been facing rapidly increasing liability for employment related claims. From sexual harassment to discrimination in hiring, employers are now legally responsible for a broader range of employment related acts. This change has resulted in an environment of rapidly increasing employment claims.
The insurance industry has responded by developing employment practices liability insurance (EPL), an insurance product designed to respond to the rising employment related claims. In addition, employers have been trying to catch up by developing, with the help of their employment liability insurers and counsel, defenses and risk management practices.
EPL coverage is a significant opportunity for new sales. Many employers do not now purchase coverage, and the new specialty programs provide broad coverage at affordable pricing.
Tennant Risk Services is also offering EPL Wrap Programs to your small to medium sized books of homogenous accounts. Click here for more information.
Exposure
Do EPL claims occur? Yes, with surprising frequency and severity. Many small to medium sized businesses do not yet appreciate the significant employment exposure facing them. Employment litigation has increased by 400% in the last 10 years as a growing number of employees sue their employers for sexual harassment, discrimination and wrongful termination.
There are a number of ways in which past, present and prospective employees can involve the employer in employment disputes. These can run from serious sexual harassment situations costing millions to smaller frivolous claims. While accurate statistics are hard to determine, it is believed that the average EPL claim now settles for approximately $450,000. Frivolous claims rarely settle for less than $10,000 including legal fees.
Professional Liability Insurance
Employment Practices Liability insurance, often called EPL insurance, is available from a wide range of specialty lines insurers. Coverage and pricing varies greatly depending upon the type and size of operation, and the account's employment practices. Location also has a significant impact on underwriting this coverage because part of the employers liability is determined under state law.
Optional coverages, or coverage enhancements, are available from time to time on select accounts. These coverage enhancements include defense costs outside the limit and punitive damage coverage. Also, third party discrimination coverage is available for select accounts from a few insurers.
Limits and deductibles vary with the size and type of insured. Standard limits for most small to medium sized organizations start at $500,000, although lower limits are available. Minimum premiums are generally $1,000, but vary by insurer, location and limit. Policy forms vary significantly, but typically are claims-made forms with defense costs included within the limit and deductible.
Some insurers provide significant risk management services in addition to the insurance policy. For example, EPL hotlines and sample employment manuals are particularly useful for small businesses.
Opportunities
Tennant Risk Services Insurance Agency LLC ("Tennant" or "Tennant Risk Services") provides EPL coverage for all different types of accounts. Please let us know your client's needs and we will provide you with information and assistance with your particular situation or account, and professional liability coverage.
Tennant Risk Services is also offering EPL Wrap Programs to your small to medium sized books of homogenous accounts. Click here for more information.
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