Employment Practices Liability Insurance-Is It for You?

By Bolens, Lisa | Journal of Property Management, May 2000 | Go to article overview

Employment Practices Liability Insurance-Is It for You?


Bolens, Lisa, Journal of Property Management


Nowadays an uncouth joke or a condescending gesture in the workplace can translate into a lawsuit. Discrimination and various harassment lawsuits are very real corporate risks, and companies need to know how to protect themselves should a situation arise.

A new insurance product has been introduced to do just that. Employment Practices Liability Insurance (E.P.L.I.) policies will cover claims brought against the insured employer, its subsidiaries, and affiliated entities, including its directors, officers, and employees. Policies vary and the broadest definition covers full-time/part-time, temporary, and seasonal employees.

A typical E.P.L.I. policy covers the following types of alleged wrongful acts: discrimination; sexual harassment; wrongful discharge; breach of employment contract; violation of various stare laws including defamation; invasion of privacy; intentional infliction of emotional distress; failure to promote; wrongful discipline; failure to grant tenure; retaliation; and various claims of negligent supervision or management.

Awareness Prompts Action

The development of E.P.L.I. stems from many activities concerning employment. First, the public labor force is more aware of its rights in relation to sexual harassment, discrimination, and wrongful termination. This awareness has increased the employee--related claims against employers from both former and current employees.

The labor force also is becoming more educated and is less likely to let what it views as injustices slide. In particular, women no longer feel the need to put up with sexual innuendo or unfair practices, which has led to more litigious activity.

Secondly, the 1991 amendment to Title VII of the Civil Rights Act and other state and federal laws covering the employer/employee relationship, now allow the right to a jury trial and punitive damages. Courts are beginning to rule in favor of employees, awarding large punitive damage fees. Employers can find themselves in a lawsuit over unfair practices that can knock out their company's entire assets.

Also the hiring, disciplining, and termination policies of employees gained new interest, forcing employers to re-evaluate their employment practices. To avoid claims and liability, a employer must implement proactive and preventive steps to safeguard itself.

Study Your Policy

The exclusions will vary including OSHA violations, ERISA violations, illegal conduct, fraud, conduct not arising out of the scope of the employment relationship, bodily injury, wage and hour violations, reasonable accommodation of the disabled employee, and National Labor Relations Board, WARN Act (Worker Adjustment and Retraining Notification Act of 1988) and COBRA (Consolidated Omnibus Budget Reconciliation Act of 1986) violations.

Punitive damages might be covered, but not all states will allow companies to insure against punitive damages. Also E.P.L.I. policies may or may not cover prior acts, which are violations that occurred before the beginning date of your policy. It is recommended that managers purchase only policies with prior-act coverage. Check within your state for statutes that dictate known time limits to bring suit.

Some states have had E. …

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Employment Practices Liability Insurance-Is It for You?
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.