Employment Practice Liability (EPL)
Employment practice liability insurance provides coverage to employers against claims made by employees alleging wrongful termination, discrimination, sexual harassment, invasion of privacy, false imprisonment, emotional distress, and wage and hour law violations. These forms are written on a claims-made basis and generally exclude coverage for large-scale and company-wide layoffs. Most cases of wrongful termination are brought under California’s Fair Employment and Housing Act (FEHA) which can include:
- Sexual Orientation
- Gender Identity
- Political Affiliation
- Emotional Distress
Depending on the size of your business, employment practices liability can be included as an endorsement to Business Owners Policy, General Liability Policy, and Directors and Officers Liability Policy with limited policy limits.
Premium for employment practices liability insurance is largely dependent on the number of employees, employee turnover rate, and prior claim history.