Commercial insurance is more complex than many businesses realize, and there are a variety of different policies that fall under this description. Employment practices liability insurance is something agencies often forget to purchase, but it’s crucial to have in many instances.
Types of Claims Covered Under Employment Practices Liability Insurance
As its name suggests, employment practices liability insurance (EPLI) covers wrongful acts related to the hiring process. Discrimination, sexual harassment, and wrongful termination are some of the most common malpractices. Additional issues typically covered by San Diego employment practices liability insurance include retaliation, invasion of privacy, defamation, negligent evaluation, failure to promote, and deprivation of a career opportunity.
Claims That Aren’t Covered by EPLI
EPLI doesn’t cover all areas of risk, and as with all types of commercial insurance in San Diego, you must check with your provider. Most EPLI policies don’t cover claims resulting from criminal acts or claims arising under workers compensation laws. Other common exclusions are violations of the Occupational Safety and Health Act, National Labor Relations Act, Worker Adjustment and Retraining Notification Act, and Employee Retirement Income Security Act. Computer breaches that invade your agency’s privacy are not always covered by EPLI.
Two Types of EPLI Policies
You can buy EPLI with either a claims-made or an occurrence policy. Claims-made policies require the insured to have the policy in place when the event happened and when the plaintiff filed a claim. The exception is if the policy has a retroactive date, which covers incidents that happened before the start of the policy. Less common than claims-made, an occurrence EPLI policy covers all claims that took place during the period of coverage even if the policy lapses.
Variations in Defense Provisions of an EPLI Policy
Defense provisions vary among EPLI providers as well. One type of defense provision is called “duty to defend,” meaning the insurers are responsible for managing defense claims under policies with duty to defend provisions. The other type of defense provision is “non-duty to defend,” which places the responsibility of managing defense claims onto the insured.
To learn more about EPLI, contact the business insurance experts at Tri-Star Insurance San Diego. We can help your agency determine what types of insurance you need, which may also include commercial auto insurance, workers’ comp, and umbrella insurance. Give us a call today at 619-272-2100 and one of our knowledgeable agents would be happy to assist you.