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Robert W Schmidt & Company e-Newsletter
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Robert W. Schmidt & Company
155 S. Executive Drive, Suite 204
Brookfield, WI 53005-4219
Toll Free: 800-361-4011
Phone: 262-790-4011

Atomic8Ball e-Newsletter


Are you adequately protecting your insureds by only offering an Employment Practices Liability Endorsement to their Businessowners Package BOP?

Typically these EPL endorsements are very limited in scope. The table below outlines just a few of the deficiencies of these endorsements when compared to a stand-alone EPL policy.

Stand-Alone EPL Policy BOP EPL Endorsements
Provides indemnity as well as unlimited coverage for Defense Costs outside the limit of liability*. May offer Defense Costs coverage only or Defense Costs coverage within the limit of liability, eroding the limit for payment of a settlement or judgment.
Covers most employment related torts plus violations of the Fair Labor Standards Act (FLSA), Family Medical Leave Act (FMLA), Uniformed Services Employment and Re-employment Rights Act (USERRA), and the Equal Pay Act. Covers only a few named perils centered on discrimination and harassment only.
Offers up to a $5,000,000 limit of liability with retentions starting at $1,000 in most jurisdictions and for most classes of business. Offers low limits of liability that are often as low as $5,000 or $10,000 - barely enough to engage an attorney to defend an insured against a frivolous charge.
Provides a comprehensive yet inexpensive policy backed by EPL underwriting and claim specialists to ensure adequate coverage and superior claims handling. Will erode the General Liability (GL) limit if EPL coverage is triggered, in turn, jeopardizing the GL coverage limit for when an actual general liability claim occurs.
Includes unlimited access to a toll free hotline staffed by an HR firm experienced in handling employment practices questions from insureds. Does not offer any risk management services.
Provides coverage for claims made against the insured during the policy period with Full Prior Acts coverage available to most insureds. Are Occurrence Based - potential insurance gaps may exist when determining the actual date that a claim was made in relation to the term of the policy.
*Defense coverage is outside the limit only if a $500,000 EPL limit or greater is selected. Defense costs for FLSA claims is within the $100,000 sub-limit where the endorsement is offered.

Employment Practices Liability Insurance protects an employer against claims made by employees, former employees, and even potential employees. It covers discrimination (age, sex, race, disability, etc.), wrongful termination of employment, harassment, and other employment-related allegations. Coverage can also be extended to cover claims of discrimination and harassment made by third parties such as customers and vendors. The policy provides coverage for the costs associated with defending these types of claims and any settlements or judgments that result.

Over 40% of EPL claims are brought against private employers with fewer than 100 employees. Can your client afford to spend $150,000 to defend themselves against an EPL claim, even a frivolous one?

An EPL policy is not as expensive as you may think and your insureds will be glad you provided them with the better coverage option.

Get an EPL Application here.


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Check out our website or give us a call for an application today!