INSURANCE COVERAGE FOR EMPLOYMENT CLAIMS
D. Wesley Newhouse
Newhouse, Prophater, Kolman & Hogan, LLC
Tel: (614) 255-5441
I. THE BASICS OF EPLI.
A. Wrongful Acts Coverage.
- Not a general liability policy.
- Covers specifically delineated employment claims.
- Violation of State and Federal Discrimination Laws.
- Wrongful Discharge.
- Breach of Employment Agreement.
- Wage and Hour Claims (some policies cover).
- Employee Benefit Claims.
- Workers’ Compensation Claims.
- Personal Injury Claims.
- Violation of Labor Agreements and Laws.
- OSHA Violations.
- Third-Party Claims (some policies cover).
- Charge of discrimination or similar administrative action.
- Written demand from an employee (some include oral demands).
C. Claims Made Basis.
D. Defense Costs Apply to Limits.
E. Selection of Counsel.
- Most carriers select from approved list.
- Large insureds are more likely to be able to select counsel.
- Early claim reporting helps employers select.
- Employment law experience helps employers select.
- Some carriers offer indemnity only policies.
F. Who is Insured?
- Directors and officers.
- The company.
- Temporary, leased, and seasonal employees (some policies).
II. MARKETING EPLI.
- EPLI is often packaged with D & O, malpractice
and other specialty coverages.
- More carriers are offering stand-alone policies (CNA).
B. Large vs. Small Employers
- Clear delineation of carriers.
- Mass suits targeting high profile employers has
limited carriers in large employer market.
C. High Risk Insureds:
- Employee leasing firms.
- Educational Institutions.
- Law firms.
- Entertainment industry.
- Real estate/property management companies.
- Auto dealers.
- Technology companies.
D. Growth in Specialty Carriers and Risk Pools.
- Ohio School Boards Association.
- Higher education market.
III. OTHER SOURCES OF COVERAGE.
A. General Liability Policies.
- Personal injury coverage for defamation, invasion of privacy.
- May cover third-party claims excluded by EPLI.
B. D & O Policies.
- Generally covers individuals, not the company.
- Often excludes claims among insureds.
C. Homeowners Policies.
- Often excludes business-related claims.
- May cover claims beyond scope of employment.