Summary
Underwriters at Lloyd's are credited with originating the first employment practices liability (EPL) insurance policy, which generally was regarded as awkward: coverage for defense expenses for allegations of liability, with a low limit, a hefty premium and coinsurance participation by insureds. Few employers actually purchased these early policies. But then, 1991 brought its "triple whammy" of events that set the stage for both claims and insurance coverage as they are today. In the early 1990s, insurance giants Chubb and American International Group introduced EPL products written on both a monoline basis and in conjunction with other management liability products. Many more insurers joined in, and soon almost every insurer willing to address management liability exposures had some version of EPL insurance. It would always be preferable to prevent EPL claims where possible, but given this litigious society, making sure that the EPL insurance in place is understood and has been examined carefully seems like a preferable approach for most buyers.
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Extract
Epl Insurance: Fortifying Coverage
Although not even available until the late 1980s, insurance for employment practices liability has become an important part of nearly every organization's insurance protection portfolio.
Underwriters at Lloyd's are credited with originating the first EPL insurance policy, which generally was regarded as awkward: coverage for defense expenses for allegations of liability, with a low limit, a hefty premium and coinsurance participation by insureds. Few employers actually purchased these early policies. But then, 1991 brought its "triple whamm...See the full content of this document
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