Employment Practices Liability Insurance

Employment Practices Liability Insurance

Protecting you against lawsuits from employees

It was Ronald Reagan who said: “Surround yourself with the best people you can find, delegate authority, and don’t interfere as long as the policy you’ve decided upon is being carried out.” It sounds so simple, doesn’t it? But every business owner and director of HR knows that hiring the right people and keeping them motivated and happy can be the best and worst bits of their job. After all, people are human and sometimes behave in unexpected ways. And when you factor in a work situation – like people having to be laid off or fired, or promoted, or behaving inappropriately – people can seek legal remedy when they feel threatened or mismanaged. Employment related lawsuits are now all too common – and can be incredibly costly.

It’s not just employees that you’re accountable for – it’s for your working practices and methods too. Employment law is constantly changing, so it pays to be protected against loss caused by litigation from employees past and present. That’s where having and Employment Practices Liability Insurance policy from Axis Insurance Managers makes sound financial sense.

The complexities of a legal battle, arbitration case or regulatory situation can be very stressful and very expensive for an employer. When you’re sued by employees for employment-related acts such as failure to promote, wrongful dismissal, harassment, or employment discrimination – even if a suit is completely unwarranted and meritless – you will have to spend money, time and resources to bring it to a conclusion.

Many employers mistakenly think that their general commercial insurance policies provide coverage in such situations. Unfortunately, the truth is quite the opposite and a general liability insurance policy usually specifically excludes employment lawsuits. Directors and Officers Liability Insurance policies for private companies usually include full EPL coverage; however D&O policies for public companies cover just the Directors and Officers for most employment practice liability claims – rather than the corporate entity.  In reality, most EPL claims are made against a corporation, so while EPL is a minor benefit for the director and officers, it is not really a coverage solution. Therefore an Employment Practices Liability Insurance policy from Axis will close this gap in coverage and help defend you and your company against litigation and employment tribunals.

Although there are various types of Employment Practices Liability Insurance, policies usually cover defense and compensatory damages. Additionally, some insurers also help with loss prevention strategies by providing information on training, assistance with employment issues, loss-prevention tools (model employment policies, procedures, and forms), a specialist lawyer and loss control personnel. So however big your company, or the potential issues you face, with an Employment Practices Liability Insurance policy from Axis, you can rest safe in the knowledge that you’re protected.

Benefits of Employment Practices Liability Insurance coverage from Axis include:

• Violations of employment practices covered by our policy include harassment, discrimination, retaliation, wrongful termination, wrongful failure to employ and failure to grant tenure, or employment-related libel or slander
• Our policies have a broad definition who’s covered including full-time, part-time, temporary and seasonal workers as well as past and present employees and employment applicants
• We can also provide coverage for leased employees and  independent contractors
• Coverage is also available for employees in the US. As with other legal liability policies the exposure is much bigger in the US and therefore this policy makes sense for companies with US employees
• Punitive, exemplary and multiple damages coverage available (including multiple awards under the Age Discrimination in Employment Act (ADEA) and the Equal Pay Act)
• Coverage is available on a duty to defend basis if preferred
• We will work with you to ensure that adequate limits are provided specifically for EPL claims
• Automatic coverage for qualifying subsidiaries created or acquired during the policy period
• We are constantly educating ourselves and staying ahead of market trends and developments and are able to provide you with the latest analysis on Employment Practices Liability Insurance
• We will provide in-depth comparisons of insurers’ policy wordings and make recommendations - negotiating special changes and policy features as necessary

As with every insurance policy there are different options, policy wordings, enhancements or amendments available. Your Axis Insurance manager will be able to help create a tailor-made policy to suit your exact requirements.

To find out more about Employment Practices Liablilty Insurance, or to discuss your existing insurance policies, please give one of Axis insurance’s professional and experienced team members a call at 604.731.5328 or email: We would also be pleased to outline the benefits of Employment Practices Liablilty Insurance with your management team or board members. If you would like to schedule a meeting or request an application form, please call us.