Employment Practices Liability (EPL), also known as Employment Practices Liability Insurance (EPLI), is a critical form of coverage for your community. This insurance protects the board of directors from allegations related to employment practices, specifically harassment, discrimination, or wrongful termination. What distinguishes EPL from other liability insurance is its extensive coverage, which includes claims from both residents and third parties, such as vendors who engage with your community.
Protection: EPL covers a wide range of employment-related claims, including harassment, discrimination, and wrongful termination. This comprehensive coverage helps communities manage risks associated with their interactions with employees, residents, and third parties.
Financial Security: Without EPL coverage, communities could face significant out-of-pocket expenses for legal defense and potential settlements or judgments. EPL insurance helps mitigate these financial risks, protecting your community’s assets.
Peace of mind: Board of directors can perform their duties with greater confidence, knowing they have protection against personal liability for employment-related decisions.
It is crucial to note that while EPL provides coverage for claims from residents, it often needs to be specifically endorsed to include coverage for third-party claims of discrimination or harassment.
Our commitment to management education, mitigation, and control allows us to source superior programs with coverage at competitive, needs-based rates.
Contact our team of experts today to learn how our property insurance expertise can help protect your assets and secure your community's future.
Protecting your community
The importance of EPL coverage cannot be overstated in today's litigious environment. It serves as a crucial safeguard for community associations, protecting their board of directors from potentially devastating financial and reputational damage. EPL coverage can provide:Protection: EPL covers a wide range of employment-related claims, including harassment, discrimination, and wrongful termination. This comprehensive coverage helps communities manage risks associated with their interactions with employees, residents, and third parties.
Financial Security: Without EPL coverage, communities could face significant out-of-pocket expenses for legal defense and potential settlements or judgments. EPL insurance helps mitigate these financial risks, protecting your community’s assets.
Peace of mind: Board of directors can perform their duties with greater confidence, knowing they have protection against personal liability for employment-related decisions.
Coverage Details
EPL coverage is offered as an optional coverage that can be added to your Directors and Officers (D&O) Liability policy.It is crucial to note that while EPL provides coverage for claims from residents, it often needs to be specifically endorsed to include coverage for third-party claims of discrimination or harassment.
Real-world scenarios
To illustrate the importance of EPL coverage, consider these real-world claim examples:- Vendor age discrimination: A vendor claims that he did not receive a contract due to their age. Without such coverage, the community could be exposed to significant legal and financial risks if a vendor alleges age-based discrimination in the contract awarding process.
- Resident discrimination: An associate of the Association is being harassed by a board member. The remaining members of the board are advised of the harassment and refuse to take any remedial action.
Invest in your community's protection
Our team at FS Insurance Brokers is committed to providing you with expert advice and solutions for complex insurance situations. By choosing us, you are partnering with industry experts dedicated to your community's long-term security and financial stability.Our commitment to management education, mitigation, and control allows us to source superior programs with coverage at competitive, needs-based rates.
Contact our team of experts today to learn how our property insurance expertise can help protect your assets and secure your community's future.
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