What is Employment Practices Liability Oil Program?
The Employment Practices Liability Oil Program is a specialized insurance policy designed to protect oil and gas companies from claims made by employees. These claims may involve allegations such as wrongful termination, discrimination, harassment, or other employment-related issues. Given the unique labor risks in the oil and energy sectors, this type of coverage helps businesses manage potential legal costs and damages arising from employee lawsuits.
Who Needs It
Any business operating in the oil and gas industry with employees should consider Employment Practices Liability Insurance (EPLI). This includes drillers, refineries, pipeline operators, equipment suppliers, and service contractors. Even companies with strong HR practices can be vulnerable to claims, making EPLI an important risk management tool.
What It Typically Covers
An Employment Practices Liability Oil Program generally covers:
- Wrongful termination
- Employment discrimination (based on race, gender, age, etc.)
- Sexual harassment and hostile work environment claims
- Retaliation claims
- Defamation, invasion of privacy, and other personal injury claims related to employment
- Defense costs, even if the claim is groundless
Common Exclusions and Limitations
While EPLI offers broad protection, it does not cover everything. Common exclusions may include:
- Criminal or intentional acts by company leadership
- Workers’ compensation claims
- Contract disputes
- Unpaid wage or labor law violations
- Claims that occurred before the policy's effective date (unless retroactive coverage is included)
Each policy differs, so it’s important to review terms carefully.
Factors That Influence Cost
The cost of an Employment Practices Liability Oil Program can vary based on several factors:
- Company size and number of employees
- Claims history
- Type of oil and gas operations
- Employee turnover rate
- Geographic location and state-specific risks
- Coverage limits and deductibles
Proof of Insurance & Compliance
Many contracts and business partners in the oil industry may require proof of EPLI coverage. While not mandated by law in most states, having this insurance can support compliance with industry standards and demonstrate responsible business practices. Requirements may vary by location and client agreements.
How to Get a Quote
Getting covered is simple. Start by answering a few questions about your business to receive a customized quote tailored to your oil industry needs. Get a quote today.
Frequently Asked Questions
What types of employee claims are covered under this program?
It typically covers wrongful termination, discrimination, harassment, retaliation, and other employment-related issues.
Is this coverage required by law for oil companies?
No, it's generally not legally required, but many clients and contracts may request proof of employment practices liability coverage.
Does it cover claims from independent contractors?
Usually, EPLI policies are focused on claims from employees. Coverage for contractors may be limited or excluded, depending on the policy terms.
Can small oilfield service companies benefit from this coverage?
Yes, even small businesses face employment-related risks and can benefit from the protection and legal defense EPLI provides.
Will past incidents affect my eligibility or rates?
Yes, insurers often consider previous claims and HR practices when determining eligibility and premium costs.
Still have questions? Talk to a local insurance expert.