Risk & Business Magazine JGS Insurance Magazine Fall 2019 | Page 31
LIABILITY INSURANCE
BY: MEAGHAN TYNDALE-WILLIAMS, CLCS
VICE PRESIDENT, JGS INSURANCE
Meaghan Tyndale-Williams began her
insurance career with Liberty Mutual
in Commercial Lines as a Direct Sales
Property & Casualty Producer. She won
numerous sales contests and awards
while at Liberty Mutual including 2008
Producer of the Year, Millionaires Club
and Liberty Top Producer Club. In 2014,
after having her first of two children, she
transitioned to JGS Insurance to be closer
to home and began her current position as
Vice President.
additional premium, third-party coverage
can protect an organization from outside
vendors, customers, or other individual
claims.
For example, a delivery driver routinely is
sexually harassed by a business’s employee.
If the driver were to file a harassment
lawsuit against the organization, an EPLI
policy which includes third-party coverage
would respond.
In today’s highly litigious environment,
coupled with increased courage by
employees in outing and confronting
discrimination, harassment, and other
inappropriate acts, businesses are exposed
more than ever to a claim. Ensuring your
employment practices liability insurance
policy will meet the exposures of today’s
world has never been more important.
LIMITS AVAILABLE
Employment practices liability coverage
can often be provided as an endorsement
to a business owner’s policy. However, it is
a best practice to have a stand-alone policy
which may provide broader coverage and
not be affected by an underlying policy.
Most stand-alone policies begin with a $1
million limit and increase from there. The
limit of insurance typically includes costs
associated with settlements, judgments,
and legal defense costs. Claims related
to wage and hour (FLSA), third-party,
and other exposures typically have a
lower sublimit associated with them. It is
important to note limits may be reduced
or their availability shortened during
times of mass staff reductions, mergers, or
acquisitions.
COST OF COVERAGE
The cost of obtaining an employment
practices liability policy is dependent on
many factors including the following:
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Not having an EPLI policy in place not
only exposes an organization to the
obvious costs associated with a claim,
including defense and damages, but also
the nonquantifiable costs. When an
organization becomes entangled in an
employment dispute, morale can decline,
negatively impacting productivity. And in
more extreme scenarios where claims are
made public, a business’s reputation could
be at risk.
The costs associated with not carrying
employment practices liability insurance
outweigh whatever premium your chosen
insurance company wishes to charge. If you
have employees, you need EPLI.
Hiring and Firing Procedures
Management’s Experience
Number of Employees
Prior Claims History
Type of Business
Most policies also include a deductible,
which is an amount that must be paid by
the insured before a policy will respond to
a claim.
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