Policyholder Services

What does Employment Practices Liability (EPL) insurance cover?

Most ophthalmic practices recognize that employees are their most valuable assets in running an efficient business. However, as an owner or administrator of an ophthalmic practice, you may not be aware of your growing vulnerability to exposures resulting from your liability as an employer.

You can try to do everything right and still find your business subject to claims of wrongful employment practices. Whether the allegations against you are legitimate or unfounded, you may be faced with expensive legal bills.

No ophthalmic practice is immune to lawsuits therefore practices with employees should seriously consider adding Employment Practices Liability Insurance coverage (EPLI).

Although OMIC does not provide this type of insurance directly, we have arranged for access to this coverage through Lloyds of London underwriters.

Who is covered?
The health care entity; current and former appointed directors and officers, and any current and former employees, including volunteers, independent contractors, and leased employee.

What claims are covered?
The policy covers wrongful acts directed against any employee, former employee or employment applicant arising out of an employment relationship.

Discrimination based on race, religion, age, sex, national origin, disability or any other protected class.

Harassment, sexual or other.

Wrongful termination, including wrongful discipline or evaluation; retaliation; demotion; failure to hire or promote; or breach of employment contract.

Retaliation in response to whistleblower actions or other.

What losses are covered?
A policy usually covers defense expenses; damages, including multiplied and punitive damages; judgements, including interests; and settlements.

What prior acts are covered?
The policy should include coverage for claims made during the policy period arising from incidents that occurred any time before the policy effective date. Claims are not covered when directors and managers had reason to believe a past wrongful act could be expected to give rise to a claim.

What are the coverage limits?
Coverage is provided on a claims made and reported basis with defense expenses included within the limits. Limits usually range from $100,000 up to $1,000,000 per claim and annual aggregate. Varying deductible options are available starting at $10,000.

What additional coverage options are available?
Insureds may include the following in their coverage.

Third party coverage protects the insured from suits brought by people who are not in an employment relationship with the insured, such as hospital personnel, independent contractors, or vendors.

Although OMIC does not provide this type of insurance directly, we have arranged for access to this coverage through Lloyds of London underwriters.

Contact the program representative, Dana Pollard Carulli, at NAS Insurance Services (877) 808-6277 (or  dcarulli@nasinsurance.com) for information about the competitive pricing for the limits and coverage that are appropriate for your practice.