Common Employment Practices Liability Exclusions
Because EPL policies vary by state and insurance carrier, and because Exclusions are affected by circumstances unique to the policyholder’s industry and individual claims history, the following list of common Employment Practices Liability Exclusions should NOT be interpreted as all-encompassing; but rather, viewed for illustrative purposes only. Please consult the actual policy issued for Exclusions binding on your coverage.
Bodily Injury.
Typical Employment Practices policies eliminate coverage for bodily injury. Better policies may grant back coverage for emotional distress and mental anguish.
Contractual Liability and Breach of Employment Contract Claims.
Liability assumed through an employment contract is not typically covered; along with any liability assumed under a contract with a vendor, landlord, business partner, or other party, unless the policyholder would have the liability in absence of the written or verbal contract.
Criminal and Fraudulent Acts.
Malicious, fraudulent, and criminal acts or omissions of the insured are excluded.
Punitive or Exemplary Damages.
Coverage for punitive damages are commonly excluded. Many (though not all) states prohibit an insurer from providing payment on behalf of an insured for punitive damages.
Strikes and Lockouts.
No coverage for injuries that occur during periods of strikes or labor disputes.
Violation of Employment Laws and Other Regulations.
Most Employment Practices Liability policy EXCLUDE coverage for all violations of laws, except for those specified by name in the policy.
Coverage is commonly provided to the policyholder for laws under the purview of the Equal Employment Opportunities Commission:
- Title VII of the Civil Rights Act of 1964 and amendments thereto
- The Americans with Disabilities Act
- The Age Discrimination in Employment Act
- The Equal Pay Act
- The Pregnancy Discrimination Act of 1978
- The Immigration Reform Control Act of 1986
- The Family and Medical Leave Act of 1993
- For EEOC statistics click here (XLS spreadsheet) or visit the EEOC website.
Wage and Hour Claims.
Exclusions brought against an employer for unpaid overtime or other allegedly unpaid earnings.
Workers’ Compensation Statutes.
Where Workers’ Compensation coverage is provided by state statute, coverage is excluded from the EPL policy.
Disclaimer: The information presented on this website is for illustrative purposes only. Hill & Usher does not intend to provide legal advice. Every claim is unique and available coverage is determined by all terms, conditions, declarations, exclusions, and endorsements specific to each Insured’s policy.