Employment practices liability policies cover claims arising out of employment-related activities such as hiring and firing, as well as day-to-day interactions between employees. Typical allegations arising out of these activities include discrimination and harassment.
These interactions and resulting claims, however, are not restricted to employee-to-employee relationships. Businesses and their employees can be accused of discrimination and harassment by outside parties such as customers, vendors, service providers and other persons having business relationships with the insured.
Coverage for such claims can be an important part of an insured's EPL policy. Most insurers offer the coverage, either automatically as part of the basic policy or as an option by selection on the declarations or endorsement for an additional premium.
The agent should offer this coverage to any insured with employees who interact with other individuals at the workplace or elsewhere.