Employment Practices Liability Insurance (EPL) Coverage for Public Entities

Employment practices liability insurance helps provide coverage for employment-related claims involving allegations of discrimination, wrongful termination, harassment, retaliation, unfair discipline, wrongful hiring, supervision, demotion, failure to promote, misrepresentation, defamation, libel, slander, disparagement and invasion of privacy. 

Many insurers address these exposures by offering a suite of professional liability coverages geared toward public entities which provide coverage for both public entity management liability claims and employment practices liability claims. At Travelers, we offer stand-alone employment practices liability coverage to public entities so payment of employment-related claims will not erode the limits available for public entity management liability claims. Further, many policies exclude coverage for wages (back pay and front pay), which are often an integral part of an employment-related lawsuit. 

Key coverage features

  • "Pay on behalf of" basis (deductible options only) 
  • Damages include attorneys' fees of the person or organization making a claim or bringing a suit when such fees are awarded, or paid in a settlement, for covered employment loss   
  • Duty to defend claims and suits that seek damages, including arbitration proceedings or other ADR (alternative dispute resolution) proceedings that seek damages. Duty to defend also applies to a governmental administrative proceeding seeking injunctive relief for employment loss, (e.g., Equal Employment Opportunity Commission) 
  • Defense for claims or suits alleging criminal, malicious, dishonest or fraudulent conduct until determination or admission of such conduct in a legal proceeding 
  • Coverage for front and back wages if awarded as damages or paid in a settlement for covered employment loss 
  • No exclusion for class action suits 
  • Toll free "hotline" where EPL insureds may seek general guidance from a national employment law firm about employment-related concerns at no additional cost. 

Optional features/coverages

  • Non-employment sexual harassment coverage for third parties available by endorsement

Who is this right for?

This coverage is specifically designed to help protect:

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