The most common misperception about Employment Practices Liability claims is, “I have coverage under my workers’ compensation policy for that.” The truth is you probably do not. Workers’ compensation and employer’s liability insurance contemplates physical injury and illness due to work-related injuries. Employment Practices Liability is a different animal altogether. EPL coverage contemplates employee-generated suits for things like discrimination, wrongful termination and harassment. Take a look at the statistics provided through Swett and Crawford for a picture of how you might me at risk for an employment practices liability claim.
