BROCHURE: UNDERSTANDING THE EMPLOYMENT-RELATED PRACTICES LIABILITY COVERAGE FORM

(August 2019)

Employment-related practices lawsuits have become common. Claims can come from both current and former employees and even from job applicants you didn’t hire! The procedures that you use or don't use in hiring, firing and managing your employees can translate into huge defense costs and legal awards to plaintiffs for your errors or oversights even if they were unintentional.

Consult the policy for definitions and limitations. The terms of this brochure do not represent contract terms. The policy is subject to company underwriting practices.

WHAT IS COVERED?

Employment-related Practices Liability Coverage provides broad insurance protection from employment-related practices claims and lawsuits that are brought against your company, managers and directors and officers. It covers such things as age, race, ethnicity and gender discrimination, sexual harassment, wrongful discipline and termination and negligent decisions involving hiring, promotion, and compensation. It also applies to breach of employment contract, employment-related emotional distress, and mental anguish, invasion of privacy, libel, and slander.

WHAT IS NOT COVERED?

Every insurance policy has certain exclusions and limitations especially in a policy such as this that is providing very specific insurance coverage.

• Criminal, Fraudulent or Malicious Acts
• Contractual Liability
• Workers Compensation and Similar Laws
• Violation of Certain Laws Applicable to Employers
• Strikes and Lockouts
• Prior or Pending Litigation
• Prior Notice

Always review the coverage form carefully for other limitations and details of its exclusions.

WHAT ARE THE CONDITIONS?

Conditions are obligations you owe to the insurance company as well as the obligations the insurance company owes to you. Most provisions are related to the occurrence of a loss.

• Bankruptcy
• Consent To Settle
• Duties in the Event of a Claim or a Wrongful Act That May Result in a Claim
• Legal Action Against Us
• Other Insurance
• Premium Audit
• Representations
• Separation Of Insureds
• Transfer Of Rights Of Recovery Against Others To Us
• If You Are Permitted To Select Defense Counsel
• Transfer Of Duties When Limit Of Insurance Is Used Up
• When We Do Not Renew

WHAT ARE THE DEFINITIONS?

Refer to the coverage form for a list and description of policy definitions.

WHAT ABOUT ENDORSEMENTS?

The Employment-Related Practices Liability Coverage Form provides fairly narrow coverage. For this reason, the number and type of endorsements available to modify or adjust it also is fairly limited, but endorsements are available and should be considered.

Note to subscribers:

Related Article: ISO Employment-related Practices Liability Endorsements Checklist

REPRINT PERMISSION

PF&M subscribers in any manual or electronic form are permitted to reprint any portion of this brochure for their commercial insurance customers. Other uses require permission from The Rough Notes Company, Inc.