Employment Practices Liability Insurance

Approved & Edited by ProProfs Editorial Team
The editorial team at ProProfs Quizzes consists of a select group of subject experts, trivia writers, and quiz masters who have authored over 10,000 quizzes taken by more than 100 million users. This team includes our in-house seasoned quiz moderators and subject matter experts. Our editorial experts, spread across the world, are rigorously trained using our comprehensive guidelines to ensure that you receive the highest quality quizzes.
Learn about Our Editorial Process
| By Jamesjohns82
J
Jamesjohns82
Community Contributor
Quizzes Created: 4 | Total Attempts: 1,173
Questions: 10 | Attempts: 144

SettingsSettingsSettings
Insurance Quizzes & Trivia

Are you an employer or prospective employer seeking to gather knowledge on how to cover yourself against claims that may be made by employees on matters wrongful termination and other employment related issues? Take the test below to find out!


Questions and Answers
  • 1. 

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

    • A.

      Within the policy period

    • B.

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

    • C.

      Within 5 years of the policy period

    • D.

      Within 10 years of the policy period

    Correct Answer
    A. Within the policy period
    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).

    Rate this question:

  • 2. 

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

    • A.

      True

    • B.

      False

    Correct Answer
    B. False
    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.

    Rate this question:

  • 3. 

    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.

    • A.

      True

    • B.

      False

    Correct Answer
    A. True
    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.

    Rate this question:

  • 4. 

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

    • A.

      True

    • B.

      False

    Correct Answer
    B. False
    Explanation
    EPLI coverage is available for both the CPP & BOP.

    Rate this question:

  • 5. 

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

    • A.

      True

    • B.

      False

    Correct Answer
    B. False
    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)

    Rate this question:

  • 6. 

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

    • A.

      Discrimination

    • B.

      Wrongful Termination

    • C.

      Harassment, including sexual harassment

    • D.

      All of the above

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

    Rate this question:

  • 7. 

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

    • A.

      True

    • B.

      False

    Correct Answer
    A. True
    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.

    Rate this question:

  • 8. 

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

    • A.

      True

    • B.

      False

    Correct Answer
    A. True
    Explanation
    With the optional 3rd party coverage added - this would be a covered cause.

    Rate this question:

  • 9. 

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

    • A.

      Liability

    • B.

      Property

    • C.

      Coverage

    • D.

      Applicant

    Correct Answer
    C. 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.

    Rate this question:

  • 10. 

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

    • A.

      Better protection from E & O exposure

    • B.

      Product differentiation

    • C.

      A client may be unaware of the need

    • D.

      All of the above

    Correct Answer
    D. All of the above
    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.

    Rate this question:

Quiz Review Timeline +

Our quizzes are rigorously reviewed, monitored and continuously updated by our expert board to maintain accuracy, relevance, and timeliness.

  • Current Version
  • Mar 19, 2023
    Quiz Edited by
    ProProfs Editorial Team
  • Apr 14, 2014
    Quiz Created by
    Jamesjohns82
Back to Top Back to top
Advertisement
×

Wait!
Here's an interesting quiz for you.

We have other quizzes matching your interest.