To make it easier to understand employment practices liability insurance, we’ve made this EPLI glossary of terms.
Even the name “employment practice liability insurance” sounds overwhelming. That’s why we generally shorten it to EPLI. In the same way, we want to make understanding this coverage quicker and easier, so we’ve created this EPLI glossary for your reference. If you need help getting clarity about a certain word or phrase in your policy, check out this guide or give us a call.
- Claims Made Coverage: Claims made policies step in if a claim is made while your policy is in effect. That means that if you’re being sued for something that happened last year when you didn’t have coverage, but the claim was filed last month when your policy was in force, you’re covered. Compare this type of coverage against occurrence coverage.
- Limit: Your policy will have a maximum it will pay out in your defense and settlement. This is known as your policy limit, and it’s important to make sure it’s high enough.
- Occurrence Coverage: Occurrence coverage is designed to protect you against suits that arise out of incidents that took place while your policy is in effect. For example, if a manager harasses an employee today while you have EPLI coverage in place but the employee doesn’t bring the claim until your policy has expired, you’re still covered.
- Prior Acts: This is the label for any incidents that happened before the EPLI policy was written.
- Tort: The wrongful act committed against the person (this can include negligence) that results in legal liability for your business is the tort. In short, it’s the reason for the lawsuit.
Do you have the right EPLI coverage in place for your specific business? To make sure, contact NorthStar Risk Management & Insurance Services, Inc. We can evaluate your current coverage and ensure you have the right policy to protect your business now and in the future.