In our current economic climate Employment Practices Liability Insurance (EPLI) has become a must have coverage for businesses. Employment Practices liability insurance protects companies from lawsuits from their employees for wrongful termination, harassment, discrimination, hostile work environment, etc. EPLI also protects businesses from these types of claims from non-employees thru third party coverage.

Along with the general increase in claims due to the current unemployment rate, businesses should prepare to see a rise in claims due to the expansion of the Americans with Disabilities Acts. As the article states below the EEOC has “broadened the definition of disability to include protections for employees with, for example, cancer, diabetes or epilepsy”. Uncertainty on how the courts will interpret the law and potential for companies to get brought into costly lawsuits has made EPLI an even more important coverage to look at.

Businesses should make sure their HR staff is trained and aware of the expanded ADA Amendments and that they understand the new regulations and accommodations that are now required. The excerpt below from the article gives great insight into some of the challenges facing businesses,

“A person with diabetes, for instance. You can’t ask how long they’ve had it, or how long they’ve been
taking medications—even if it seems to you to be within the regular course of typical conversation,” Mattioli
explains.

“Then you must provide reasonable accommodations—a place to test blood sugar, a break to take medications
and time to rest,” she adds. “It’s very challenging. There are so many variables.”

Businesses that currently have EPLI policies in place should make sure that they have their renewals looked at by a broker that understands these new exposures. It is important to make sure that their policy has the proper language needed to protect them from these types of claims. Businesses that may have received a quote in the past, that they elected not to take because of price, should revisit the coverage with an experienced broker. The price can really fluctuate between carriers so having a broker with extensive knowledge of the EPLI marketplace can be of great benefit.

ADA Amendments: Broader Definition Likely to Cause Spike in Claims