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Employment Practices Liability: Which Violations Are Covered?

Employment Practices Liability: Which Violations Are Covered?

Many professional employment organizations deal with an increased risk of claims due to the ever-rising multitude of wrongful termination and employment discrimination laws. The Employment Practices Liability (EPL) coverage in a peo insurance policy gives employers protection against a wide range of violations.

Federal or State Employment Laws

Following a claim made by an employee, EPL coverage will pay for any fines or legal fees created due to a violation of a state or federal-passed law. Below is a complete list of the laws which are covered in this type of policy.

  • Genetic Information Nondiscrimination Act-Immigration Reform and Control Act
  • Equal Pay Act-Civil Rights Act
  • Age Discrimination in Employment Act
  • Pregnancy Discrimination Act
  • Family Medical Leave Act
  • Americans With Disabilities Act

Which Exceptions Apply?

Any client companies or worksite employees that are directly affected by a violation of any of these laws are covered by the insured’s peo insurance coverage. Violations made prior to the start date of the insurance policy or non-employee related liabilities are not covered by EPL insurance.

Which Additional Coverages Are Recommended?

A complete peo insurance package should include general liability, errors and omissions, owned, hired or non-owned auto, employee benefits liability, directors and officers liability and employer’s liability coverages. The types of coverages, as well as their total coverage amounts, can be tailored to the company’s requirements.