Employment Practices Liability Insurance

People are the lifeblood of every organization. But employees can assert claims that prevent an employer from achieving strategic goals. Marsh can help your organization understand, manage, and mitigate your critical employment practices liability (EPL) risks.

Employment-related risks can disrupt an employer's day-to-day operations and derail long-term growth plans. Discrimination, wrongful termination, sexual harassment, and retaliation are just a few of the risks that can result in employment practices liability and costly litigation.

EPL risks are evolving, and the plaintiffs' bar is constantly pursuing litigation in novel areas, such as invasion of privacy involving employee's biometric data for timekeeping. Employers are challenged to keep up with these risks and adjust their practices and EPL insurance coverage accordingly.

Marsh's Employment Practices Liability/Wage & Hour Practice can help your organization analyze its potential exposure to EPL claims and create a robust insurance and risk management program.

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The pandemic introduced major challenges for many employers, from furloughs and layoffs, to shifting to remote work, to implementing testing and monitoring of employees' health. Many of these changes occurred quickly, increasing the risk that employers might misstep when attempting to adjust workplace policies. At the same time, the pandemic slowed the judicial process, creating a backlog in employment agency charges and litigation filings. EPL claims may now accelerate as more employees return to the workplace, often under new and unfamiliar working conditions.

EPL insurance coverage is available in different forms, depending on the employer and its specific exposures. For example, private and non-profit organizations can obtain broad EPL insurance coverage through their directors and officers liability insurance programs. Public company D&O policies, however, are designed for securities claims and do not extend to EPL risks.

Standalone EPL insurance coverage with separate limits dedicated to employment practices exposures is available and can be appropriate for many employers. We invite you to discuss your specific situation with our team of EPL insurance and risk management specialists, who can help you find the right solution so you can stay focused on your people and your business.

While discrimination is probably the most commonly thought-of EPL claim, there are many other potential avenues for claims to arise from employment practices. These include:

  • Harassment
  • Wrongful termination
  • Retaliation
  • Breach of employment contract Failure to employ or promote
  • Negligent evaluation
  • Libel, slander, or humiliation
  • Hostile workplace
  • Infliction of emotional distress
  • Violation of employee privacy
  • False imprisonment or detention

Marsh's risk specialists have extensive experience in EPL risks and can help your organization identify exposures and design an insurance and risk management program to meet your needs.