Employment Practices Liability Insurance (EPLI) and PEOs

Employers have always been faced with navigating how to protect themselves against the liabilities of employing others.  With increased awareness and occurrence of workplace violence events and the growing momentum of the #metoo movement, this exposure has never felt more real.

PEOs have a unique position with regards to this exposure, sharing employer responsibilities with their clients.  The nature of this shared exposure can vary greatly from one PEO to another depending on the composition of their client list, the contents of their CSA (Client Service Agreement) and the structure of their EPLI (Employment Practices Liability Insurance) policy.

The components of these policies can vary greatly.  Important provision within these policies include a wide rage of protections, such as IRCA (Immigration Reform and Control Act) coverage, Wage and Hour claims defense, Workplace Violence recovery and Third Party Discrimination indemnifications, just to name a few.  How and where these policies extend coverage to your client companies swings widely from policy to policy.  Does the EPLI policy require an annually updated CSA to extend coverage to a client?  What are the provisions of the Hammer Clause, which restricts the insureds rights with regards how a claim may be settled?  How are terms such as Employee, Company and Client defined within the policy?

For a comprehensive review of your employment practices exposures and coverages, speak to an experienced PEO agent.

To read more on EPLI, visit the following articles:

Today’s Hot Markets: Buyers Hungry For EPLI, Cyber and More by Insurance Journal

EPLI Claims Reach Tipping Point Amid Anti-Sexual Harassment Movement by MyNewMarkets.com

Privacy Is New Hot Workplace Issue for EPLI Claims by Insurance Journal

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