On Farmers GL Policy - What is "Employment Practices Insurance Coverage"?

[Central Coast Agent]

Hello,

This forum is a great resource, and thanks in advance for any responses you can provide.

I'm an indy agent in California. I've seen a couple of Farmers BOP's in the field that have a coverage listed on the dec page as "Employment Practices Insurance Coverage". The premium is "Included" in the BOP premium.

So, for instance, a Farmer's BOP I am looking at has a total premium of $659. The insured is under the impression that the Employment Practices Insurance Coverage is EPLI...could that be true at that price for a BOP and EPLI coverage?

Can anyone shed some light on what this is? There does not seem to be any mention in the full policy, except for an actual exclusion for "Employment Related Practices"

I am just trying to figure this out for my own personal knowledge.

Thanks

 

[nyc2phi]

EPLI covers an employer for any negligence or discrimination such as any bias or sexual harassment remarks that he could be sued for (i.e."hey Cathy sweet ass today").

I don't know much about Farmers policies but I've seen some carriers include EPLI for as little as $35 w/ a $5000 deductible

 

[Guest]

Yes, If I remember correctly, it is included, but ONLY at about $25,000, so a very minimal amount.....

Use that to your advantage

 

[Central Coast Agent]

Thanks for the above replies. I think that answers the question...its a lower limit EPL type coverage. For higher limits its my understanding the client would have to get something stand alone.

Cheers.

CCA

 

[OCinsurance]

I have several EPLI markets. If you would like to see a sample EPLI quote and some sample claims just give me his zip code, gross receipts, and the number of employees that he he has and I will be happy to get you a sample stand alone quote. 25k of EPLI is a very low number when you read the statistics.

 

[Bertolinoins]

Golden Eagle and Sequoia include $100k in EPLI in their BOP. I believe AmTrust and LG (through Builders and Tradesmen) do as well.

I hate to admit I have not read the forms but if defense is outside the limits then it is a very nice little throw in for small business owners because the defense cost is what kills you in single employee EPLI claims. Even if the case has no merit you are caughing up a $10,000 retainer and the attorney will find a way to bill it.

 

[Tucker444]

There are many BOP's that toss in EPLI.

They have low limits. Very restrictive on what they cover.

We always offer a stand alone EPLI quote.

What the BOP gives is fairly useless for most commercial accounts.

EPLI should always include:

Additional Defense Limit
3rd Party Coverage
Wage and Hour
Included Loss Control Services to help prevent claims in the first place

Then you have to get in to the forms and how they are worded.

And much more.

What you describe Farmers is giving likely has none of the above and will exclude a hell of lot more than they would cover. Also the low limit will be ate up very quickly. EPLI claims are very expensive to defend.

 

[JimnTx]

If you want EPLI, then buy a policy for it and don't to a BOP "Great Pretender" policy for the cover.