Employment-Related Practices Liability Insurance Policy

A new employment-related practices liability insurance (EPLI) policy from CIGNA Property & Casualty features a workplace violence coverage option to give small businesses added protection against employment related lawsuits.

The new policy has two separate components:

• The Employment-related Practices Liability portion covers the company, its directors, officers and employees if a wrongful act claim is made by or on behalf of a current, former or prospective employee. The definition of a "wrongful act" includes violations of employment statutes, as well as many common-law allegations for such things as defamation, invasions of privacy, and wrongful infliction of emotional distress. The claims-made policy covers prior acts (there is no retroactive date), punitive damages (where permitted by law) and does not have exclusions for strikes, lockouts, plant closings, downsizing or retaliatory actions. Policy limits are available from $500,000 to $5 million.
• The Workplace Violence insurance provides coverage for loss of business income and for public relations expenses associated with maintaining a company's image and status after a workplace violence incident. The policy also covers additional expenses such as the salary for a workplace violence victim who is unable to work, the salary of temporary employee(s), rewards to informants, temporary security measures, rest and recovery, and coverage for an immediate response by Pinkerton, Inc., a security firm contracted by CIGNA Property & Casualty to assist employers in recovering quickly from a workplace violence event. Policy limits are available from $250,000 to $5 million.

In addition to the coverage, companies will also have access to loss control resources, such as:

• an employer help line
• newsletters/legal updates
• access to a logon-secured web site with sample policies and procedures that reflect the current employment-related legislative environment; and
• human resources policies and procedures audits.