Employees and management · EPLI, D&O, fiduciary
Employment and management liability
Covers claims that aren't about physical injury: an employee alleging discrimination or wrongful firing (EPLI), or someone suing the people who run the company over their decisions (D&O).
- Who it's for
- EPLI: any business with employees. D&O: companies with investors or a board, and nonprofits with volunteer boards.
- Is it required?
- No, but investors and board members often expect D&O.
Covered and not covered
Usually covered
- Claims of wrongful termination, discrimination, harassment and retaliation (EPLI)
- Claims that leaders mismanaged the company, breached duties or misled investors (D&O)
- Legal defense, which is often the biggest cost
- Settlements and judgments, up to the limit
Usually not covered
- Unpaid wages and overtime claims, except sometimes defense costs
- Fraud or crimes that are proven
- Bodily injury and property damage
- Claims known before the policy started
Real-life examples
A fired employee claims age discrimination.
Usually coveredEPLI pays your defense and any settlement, above its retention. General liability wouldn't.
Investors sue the board over a failed acquisition.
Usually coveredD&O pays defense and settlements for the directors and officers, and often the company.
Good to know
Claims-made policies
These policies are claims-made: the claim has to be made while the policy is active. If you cancel or close the business, ask about tail coverage.
Check your own policy
Find these on your policy or declarations page, or ask your agent:
- Retention (deductible)
- Whether defense costs reduce the limit
- Retroactive date
- Third-party coverage, for claims from customers
Not sure where to look? See how to read your policy.