Anchor Bay Insurance Managers Surpluslines

Employment Practices Liability Insurance (EPLI)

Why we do not include EPLI in our program...

Several programs provide a small limit for EPLI coverage as part of a package policy for restaurants, bars & taverns. We do not. In our estimation, providing coverage in this fashion is usually a disservice to the insured and an E&O trap for the agent. Here’s why...

First, for clarity, I am not speaking of any particular competitor or competitor’s policy form. These are general comments only.

  1. Claims-Made endorsements on an Occurrence policy form. EPLI is usually provided by adding a Claims-Made endorsement to an Occurrence policy. I don’t think that most agents will remember to set a suspense to sell the tail in that situation. But since claims on this class can often come in after expiration, a failure to sell the tail leaves both the insured and the agent exposed.
  2. Poor policy form. Policy forms vary widely but as a general rule, you are probably not going to find the strongest policy forms written by General Liability carriers and endorsed to General Liability policies. You’re going to find the strongest policy forms written by carriers that specialize in the coverage.
  3. No loss control. When coverage is added by endorsement to a CGL policy, instead of written monoline by a carrier specializing in the coverage, there is likely to be very little, if any, of the loss control services that are provided by the specialty carrier.
  4. Inadequate limits. The average EPLI claim is larger than is the average CGL claim. So why would you insist on a $1 mil per Occurrence CGL limit and “be okay” with a $100,000 EPLI limit? Imagine trying to explain that decision in court.

Selling your client an EPLI policy that has an inadequate limit, that is written on a weak form and that has little loss control is a disservice to that client – even if you happen to remember to sell the tail. And it is an E&O trap for the agent.

EPLI is not an incidental exposure and should not be just “thrown in” for show on a CGL policy for a restaurant, bar or tavern. Accounts Receivable, maybe – but not EPLI. It is a real exposure and should be addressed with strong forms, adequate limits and meaningful loss control.

What we offer...

We offer Employment Practices Liability (EPLI) through an “A” rated, admitted specialty carrier. Our new business application may be found here and our renewal app may be found here.

If you have questions, please call the Program Manager, Bill Tanner at (360) 649-8969.

Anchor Bay Insurance Managers, Inc.
P.O. Box 2510
Silverdale, WA 98383
For a contact list, including phone and email addresses,
please contact us at: info@surpluslines.com

Employee E-Mail: first initial last name@surpluslines.com

NOTE: This web site provides only simplified descriptions of typical business insurance and is not a statement of contract. Actual coverage's are as specified in the policy and endorsements.