Employment Practices Liability Insurance

1. Employment Practices Liability Insurance (EPLI) protects employers from claims brought by employees for

Discrimination

Wrongful Termination

Harassment, including sexual harassment

All of the above

All of the above are covered, including an optional coverage for third party claims brought by vendors or customers.

Explanation

All of the above are covered, including an optional coverage for third party claims brought by vendors or customers.

2. More than 50% of EPLI claims are filed against small businesses?

True

False

The statement suggests that more than 50% of EPLI (Employment Practices Liability Insurance) claims are filed against small businesses. This means that a majority of claims related to employment practices, such as wrongful termination or discrimination, are made by employees of small businesses. This could be due to various reasons, such as limited resources for HR departments in small businesses or a higher likelihood of non-compliance with employment laws.

Explanation

The statement suggests that more than 50% of EPLI (Employment Practices Liability Insurance) claims are filed against small businesses. This means that a majority of claims related to employment practices, such as wrongful termination or discrimination, are made by employees of small businesses. This could be due to various reasons, such as limited resources for HR departments in small businesses or a higher likelihood of non-compliance with employment laws.

3. Employment Practices Liability Insurance (EPLI) is only available for new business, not renewals?

True

False

EPLI coverage can be added to new business effective 4/7/2014 as well an endorsement can be submitted via Agency Link to add EPLI coverage to any current business on the books. (effective 4/7/2014)

Explanation

EPLI coverage can be added to new business effective 4/7/2014 as well an endorsement can be submitted via Agency Link to add EPLI coverage to any current business on the books. (effective 4/7/2014)

4. One reason to meet with current clients or propose EPLI coverage to new clients with employees is....

Better protection from E & O exposure

Product differentiation

A client may be unaware of the need

All of the above

Meeting with current clients or proposing EPLI coverage to new clients with employees is important for several reasons. Firstly, it provides better protection from E & O (Errors and Omissions) exposure, as EPLI coverage helps protect businesses from claims related to employment practices such as wrongful termination or discrimination. Secondly, offering EPLI coverage can be a way to differentiate the product or service being offered, as not all insurance providers may offer this type of coverage. Lastly, clients may be unaware of the need for EPLI coverage, so meeting with them or proposing it can help educate them about the potential risks and the importance of having this coverage.

Explanation

Meeting with current clients or proposing EPLI coverage to new clients with employees is important for several reasons. Firstly, it provides better protection from E & O (Errors and Omissions) exposure, as EPLI coverage helps protect businesses from claims related to employment practices such as wrongful termination or discrimination. Secondly, offering EPLI coverage can be a way to differentiate the product or service being offered, as not all insurance providers may offer this type of coverage. Lastly, clients may be unaware of the need for EPLI coverage, so meeting with them or proposing it can help educate them about the potential risks and the importance of having this coverage.

5. Employment Practices Liability Insurance (EPLI) is only available on the BOP.

True

False

EPLI coverage is available for both the CPP & BOP.

Explanation

EPLI coverage is available for both the CPP & BOP.

6. When rating EPLI coverage, a full time employee is considered an employee who works more than 27.5 hours per week, while a part time employee works 27.5 hours per week or less.

True

False

The statement is explaining the criteria for classifying employees as full-time or part-time when rating EPLI (Employment Practices Liability Insurance) coverage. According to the statement, a full-time employee is defined as someone who works more than 27.5 hours per week, while a part-time employee is someone who works 27.5 hours per week or less. Therefore, the answer "True" indicates that the statement accurately describes the classification of employees based on their weekly working hours for EPLI coverage rating.

Explanation

The statement is explaining the criteria for classifying employees as full-time or part-time when rating EPLI (Employment Practices Liability Insurance) coverage. According to the statement, a full-time employee is defined as someone who works more than 27.5 hours per week, while a part-time employee is someone who works 27.5 hours per week or less. Therefore, the answer "True" indicates that the statement accurately describes the classification of employees based on their weekly working hours for EPLI coverage rating.

7. Defense costs are not included within the annual aggregate limit for EPLI?

True

False

Defense costs are included within the annual aggregate limit of liability. That means that the limit is reached by a total of both defense costs and indemnity payments.

Explanation

Defense costs are included within the annual aggregate limit of liability. That means that the limit is reached by a total of both defense costs and indemnity payments.

8. Derogatory comments made to a customer, by an employee, would be an exposure EPLI insurance would cover?

True

False

With the optional 3rd party coverage added - this would be a covered cause.

Explanation

With the optional 3rd party coverage added - this would be a covered cause.

9. Employment Practices Liability Insurance is written on a Claims-Made basis. This means the claim must be made against the insured and submitted...

Within the policy period

Any time so long as the claim occurred during the policy period

Within 5 years of the policy period

Within 10 years of the policy period

Because EPLI is being insured on a claims made basis, the claim must be submitted within the active policy period (or within a subsequent renewal period assuming there has been continuous coverage).

Explanation

Because EPLI is being insured on a claims made basis, the claim must be submitted within the active policy period (or within a subsequent renewal period assuming there has been continuous coverage).

10. In order to add Employment Practices Liability Insurance (EPLI) to a BOP quote, you will go to which of the following tabs?

Liability

Property

Coverage

Applicant

To add Employment Practices Liability Insurance (EPLI) to a BOP quote, you would go to the "Coverage" tab. This is where you can select and customize the specific coverage options for the policy, including adding EPLI coverage.

Explanation

To add Employment Practices Liability Insurance (EPLI) to a BOP quote, you would go to the "Coverage" tab. This is where you can select and customize the specific coverage options for the policy, including adding EPLI coverage.