Welcome to Employment Practices Liability (EPL) Insurance of California

As an employer, every business faces the possibility that it will be the target of legal action from past, present, and prospective employees.

The policies we provide cover a wide spectrum of employee-related claims and offer loss prevention programs to minimize the risk of EPL insurance claims. We can provide some of the most comprehensive Employment Practices Liability (EPL insurance) Policies offered to small businesses.

Consider the Following Statistics:

From October 1, 1993 through September 30, 1994, the Equal Employment Opportunity Commission and related local and state agencies received 156 discrimination complaints. As of May 1, 2003, over 100,000 complaints had created a backlog at the Equal Employment Opportunity Commission, and the average complaint took more than a year to handle.

Over 13,000 complaints of sexual harassmentwith were filed in 2002 the EEOC. Settlements for cases exceeded 50 million dollars in 2003. Defense costs were several times this amount.

In a recent telephone poll it was found that almost 31% of all female workers claimed to have been the object of sexual at work. Sexual harassment complaints were also made by about seven percent of all male workers.

Congress has created new grounds for employers to be sued through legislation like the Americans With Disabilities Act and the Family Medical Leave Act.

The numbers of employment-related claims are increasing, and so is the potential financial risk to your business. Defending a a claim of discrimination or wrongful termination -- whether you are guilty or innocent, or even if the claim is fraudulent or groundless -- can be very costly. Your company's financial resources can be seriously threatened by the potential exposure for a money damages award.

This increased business risk is very real, and it is also increasingly likely that your current insurance DOES NOT COVER employment-related claims. Employment-related claims are specifically excluded from most comprehensive general liability policies. For small for-profit employers, a directors and officers policy may offer a limited form of EPL insurance coverage, but will probably not extend coverage to the business entity. Other forms of insurance (such as fiduciary liability coverage) are unlikely to cover claims of this type:

  • Sexual harassment
  • Wrongful Termination
  • Discrimination
  • Negligent Hiring
  • Negligent Supervision
  • Negligent Promotion
  • Negligent Retention
  • statute Violation
  • Disablilities
  • Libel
  • Slander
  • Breach of Contract
  • Invasion of Privacy
  • Drug Testing
  • Mental Anguish
  • Loss of Consortium
  • Emotional Distress
  • Wage and Hour Disputes

Responding to the escalation in employment-related EPL insurance litigation and the financial risk to small business for employment related claims, we are offering our clients the service of shopping for Employment Practices Liability. Drawing on our many years of experience in handling claims for our clients, we have developed specific relationships with carriers who specialize in, and have designed, a comprehensive program to assist your business in reducing its exposure to claims by employees.