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Employment-Practices-Liability

A business owner must strive to be fair and nondiscriminatory based on age, gender, race, etc. Often times, gaps between age, gender and race can lead to miscommunication at times and may pose problems in the working environment.

At Hortica, bring your business to us and we will evaluate factors that take part in your employee practices, and recommend the best coverage to protect you and your employees.

When considering Employee Practices Insurance, there are a few points to consider before choosing the best coverage:

  • How many employees does the company have?
  • What is the percentage of employee turnover?
  • Has the company had previous claims made against it?
  • Does the company have anti-discrimination and anti-harassment policies in place?

• Managing Employment Risk – Two Free Resources
• EPLI Claim Examples

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Employee Practices Liability Insurance, broken down, provides for losses resulting from improper employment acts such as wrongful discharge or sexual harassment. It also provides for the cost to defend lawsuits whether valid or not. Any type of employee can file for such claims including current, former, seasonal or temporary employees, or employee candidates.


Employee Practices Liability is a growing topic in the insurance world. Even though big and new businesses are targeted, no matter how big or small your company is, it is important to stay covered in the event of being faced with a lawsuit.


Coverage includes:



  • Wrongful termination

  • Sexual harassment

  • Retaliation

  • Discrimination based on age, sex, race, religion or national origin

  • Breach of employment contract

  • Negligent evaluation

  • Failure to employ or terminate

  • Deprivation of opportunity

  • Wrongful infliction of emotional distress

  • Invasion of privacy

  • Slander

  • Libel

  • Drug testing

  • Wage and hour disputes (coverage for defense costs may be available)


Employment Practices Liability Insurance plays an important role in many companies’ risk management plans. The size and number of claims continues to rise along with the number of state and federal laws that apply to the employee/employer relationship. These laws include:



  • Title VII of the Civil Rights Act of 1964

  • Civil Rights Act of 1991

  • Family Medical Leave Act (FLMA)

  • Age Discrimination in Employment Act

  • Americans with Disabilities Act (ADA)

  • Equal Employment Opportunity Act

  • Equal Pay Act

  • Fair Labor Standards Act (FLSA)

  • Migrant and Seasonal Agricultural Worker Protection Act (MSPA)

  • Worker Adjustment and Retraining Notification Act (WARN)


Employment Practices Liability Policies typically include a toll-free hotline to a law firm that specializes in employment law. This valuable service connects EPL policyholders with legal experts who are available to answer most EPL questions.


The majority of Employment Practice claims are proven groundless, but they can be extremely costly to defend. An important benefit of Employment Practices Insurance is coverage to pay for a legal defense. EPL policyholders faced with a claim can expect to receive to be defended by a highly qualified law firm with special expertise in the field of employment law.


Employment Practices Liability Insurance is commonly written on claims-made policy forms which provides coverage for claims that occur and that are reported while the policy is in force. Care must be taken when changing from one claims-made policy to another. Hortica agents are knowledgeable in this specialized area and stand ready to help customers prevent potentially costly coverage gaps.


In today’s environment, Employment Practices Liability Insurance has become a necessity for most businesses. Talk with your Hortica agent about the coverage that is right for your business.