What EPLI may address
Subject to its wording, employment practices liability may respond to allegations such as discrimination, harassment, retaliation, wrongful termination and certain workplace torts. Wage-and-hour matters are often excluded or sharply limited.
Claims-made coverage
EPLI is commonly claims-made. Maintain continuity, preserve the retroactive date and report claims or circumstances according to the policy. Demand letters, agency charges and attorney communications may meet the definition of a claim.
Third-party allegations
Some policies can extend to certain discrimination or harassment allegations by customers or other non-employees. Daycare owners should ask whether parent, visitor or vendor allegations are addressed.
Prevention
Use consistent hiring, discipline and complaint procedures; document performance; train supervisors; and obtain employment counsel for difficult situations. Insurance is not a replacement for sound HR practices.