Although employers can face employment litigation at any time, employment-related lawsuits tend to increase during a stagnant or faltering economy. In order to best insulate themselves from costly verdicts, settlements and defense costs, policyholders need to understand the basics of employment practices liability insurance (EPLI) policies. In their latest Risk Management online exclusive article from Anderson, Kill & Olick, attorney Darin McMullen covers what you need to know about EPLI coverage.

EPLI policies are relatively new, having been introduced less than 20 years ago. Although an approved ISO form EPLI policy exists, EPLI policies are most often sold as manuscript policies and can have varying coverage terms and exclusions. Because EPLI policies are not uniform, a policyholder must carefully read a proposed policy prior to purchase. The key is assessing whether, based upon the policyholder’s business, the policy will provide coverage for the employment claims that it is most likely to deal with and for whom such coverage will be provided.

Whether EPLI policies are new to you or if you simply need a refresher, don’t miss this informative article only on RMmagazine.com.