Epl Coverage Goes Where We Can't

Workers Comp policies go by the official name of 'Workers Compensation and Employers Liability policy.' With employers eager to assure their injured workers of recovery benefits, it's easy to overlook the 'Employers Liability' aspect of this policy. It's there to protect the insured employer against liability arising from physical injury and occupational illness claims not covered by Workers Comp. Once one learns of Employers Liability coverage's limitations, the value of adding Employment Practices Liability coverage to the program becomes obvious.

The Employers Liability section resembles a Commercial General Liability (CGL) policy, defending the employer against claims and paying the employee, dependents, or others if the employer is found negligent. This coverage reflects the reality that Workers Comp doesn't cover every possible occupational claim. For example, the employer may be sued by a third party because the injured employee has sued the third party. Let's assume Curbside Concrete's employee is injured in an accident while driving a company mixer and sues the other driver. The other driver may then sue Curbside, arguing that a defect in its truck caused the accident. Employees using tools are especially prone to making claims like this. Employers Liability coverage is the remedy in a situation where an injured employee sues the faulty tool's manufacturer, and then the manufacturer sues the employer for poor training or maintenance of equipment.

Unlike Workers Compensation benefits, Employers Liability coverage goes beyond the workplace and the physical effects of the employee's injury. It handles claims by relatives or dependents who sue for loss of care and services that were once provided by the injured employee-or relatives sue for consequential bodily injury (for example, loss of sexual functioning). Finally, Employers Liability addresses dual-capacity situations. Consider this example of dual capacity: Mike, the building maintenance worker, is injured while installing a basketball hoop in the company gym by a drill manufactured by his employer, Dynamic Drill, Inc. He sues Dynamic as creator of the tool, not as the employer. A dual capacity claim allows Mike to circumvent the Workers Comp law to pursue a claim that is related to employment. Without active Employers Liability coverage, Dynamic would be on its own.

Workers Compensation and Employers Liability coverage takes care of the different claims that can result from bodily injuries and employment-related illnesses such as black-lung disease. What about employment-related problems that involve illness, stress, or no physical damage to the body? A worker or customer can sue a company for sexual harassment or other illegal practices occurring there. The company's Employers Liability coverage can cover the various consequences of occupational injuries, but it won't compensate the employee who has been treated unfairly by a supervisor-and the company's Commercial General Liability insurance won't protect it, either.

There's no other coverage like Employment Practices Liability (EPL) insurance. A company's employee manual might have several chapters devoted to maintaining sensitivity toward others' differences, giving equal treatment to all persons, and showing respect to everybody, but it might have little influence on what actually occurs in the business. If a worker misbehaves, the company will bear the consequences unless it has EPL coverage. This protects the company against damages arising from inappropriate criticism, demotion, evaluation, reassignment, discipline, defamation, harassment, humiliation, discrimination, or termination of any employee or any personnel practices, policies, acts, or omissions.

EPL coverage grows more popular every year, and insurance companies offer competitive premiums to attract business. Some EPL policies have added risk-management services that provide such assistance as loss-prevention specialists, helpful literature, and procedures to protect against EPL claims.