Municipalities employ a variety of workers, from elected officials and department heads to administrative and public-service staff. Employment practices liability insurance protects those employees and the municipality, making it an essential product. If you operate or work for a municipality, learn more about Municipalities Employment Practices Liability Insurance (EPLi).
What is Employment Practices Liability Insurance?
Also known as EPLI, employment practices liability insurance covers numerous employees, including municipality directors, officers, management personnel and staff. It is designed to protect the municipality against claims that allege violations of employees' legal rights.
- Breach of employment contract
- Defamation
- Deprivation of career opportunity
- Discrimination
- Failure to employ or promote
- Invasion of privacy
- Mismanagement of employee benefits
- Negligent evaluation
- Retaliation
- Sexual harassment in all forms
- Wrongful discipline
- Wrongful infliction of emotional or other distress
- Wrongful termination
When you file an EPLI claim, the policy typically reimburses your municipality for the legal costs of defending the lawsuit in court and can cover judgments and settlements whether you win or lose the case.
Most EPLI policies do not cover civil or criminal fines, punitive damages, liabilities covered by other policies such as workers' compensation, bodily injury, property damage, or losses caused by intentional or dishonest acts. Review your municipality's EPLI policy for specific coverage and exclusions, and consider customizing coverage to fit your needs.
How to Purchase EPLI
When purchasing municipalities EPLI, choose a reputable insurance company with a strong customer service reputation. The insurer should understand public-entity exposures and be available when you have questions, want a consultation, or need to file a claim.
Consider related coverage such as Public Officials Employee Liability and EPLi when evaluating a management-liability program.
- Purchase it as part of your management liability package policy.
- Purchase it as stand-alone coverage.
Discuss your options with your insurance company to ensure all your municipality employees' needs are met and to reduce your municipality's liability.
How Much Does EPLI Cost?
Several factors affect the cost of an EPLI policy. They include:
- Your type of business
- Number of employees
- Various risk factors, including previous employment practices lawsuits
For specifics on the cost of your municipality EPLI, talk to your agent who can create a customized quote for your municipality, employees, and risks.
Municipalities employment practices liability insurance offers valuable protection. Understand the coverage and ensure you purchase adequate coverage tailored to your organization.
Frequently Asked Questions
Who is covered under a municipality's EPLI policy?
Policies commonly cover elected officials, directors, officers, management, and other municipal employees for alleged employment-related wrongful acts.
Does EPLI pay legal defense costs?
Yes, EPLI typically reimburses legal defense costs and may cover settlements or judgments arising from covered claims.
Are punitive damages and fines covered by EPLI?
Most EPLI policies exclude criminal or civil fines and punitive damages, so review policy exclusions carefully.
Can a municipality customize EPLI coverage?
Yes, many insurers offer endorsements or limits tailored to a municipality's size, exposures, and budget.