In the last 20 years, employment-related lawsuits have increased by 400% and lawsuits for wrongful termination have increased 260%. Shifts in cultural expectations coupled with insufficient re-education have also led to an increase in complaints of harassment, hostility in the workplace, and inappropriate behavior between business contacts who are not necessarily employees. Business owners are well-advised to consider preventive and also protective measures to mitigate the risk and impact of such an event. 

Employment Practices Liability Endorsement (“EPLE”) coverage through OBLIC provides benefits and protection in the event the firm or an attorney covered by the firm’s policy is sued for an employment-related tort, discrimination, or breach of employment agreement.  In addition, EPLE coverage from OBLIC provides protection for a law firm and its employees against claims made by current, former, and potential employees, and third parties for alleged discrimination (based on age, sex, race religion, color and national origin), wrongful termination, sexual harassment, and wage and hour violations. Even for solo practitioners or small firms without staff, third-party coverage would include harassment claims made by clients, vendors, or colleagues.  

This comprehensive supplemental coverage through OBLIC provides limits of liability of $100,000 per claim/aggregate and a per claim deductible of $5,000. For this endorsement, the limit of liability includes costs incurred in the defense of the claim. (In other words, defense costs count toward the liability limit.) Currently, the premium is a low fixed cost of $100 per insured attorney per policy period and it is included in all quotes. However, for firms wishing to decline this coverage, the attorney or administrator responsible for completing an application (new or renewal) must annually opt-out of EPLE coverage and the associated premium. Coverage is extended to all named insured attorneys, or if a firm opts out, then coverage would not be extended to any attorney named on the policy. Higher policy limits are available subject to additional underwriting.   

Reporting a claim promptly is just as important under EPLE coverage as it is under the primary lawyer professional liability policy coverage. The definition of a “claim” under the EPLE includes demands for monetary damages and also the initiation of civil, administrative, and regulatory proceedings and alternative dispute resolution proceedings (except as arising out of a collective bargaining agreement). Claims must be first made and reported to the company during the Endorsement Period. See Section II of the Endorsement to review definitions in greater detail. 

Please note that coverage is always evaluated at the time of a claim.  

To learn more about your coverage contact your underwriter, or for additional EPLE coverage, contact our OSBA Insurance Agency staff, Danna Blackburn. 

For preventive support to mitigate the risk of claims of this nature, or with any questions about law practice management, please contact your OBLIC Loss Prevention team.  

This information is made available solely for loss prevention purposes, which may include claim prevention techniques designed to minimize the likelihood of incurring a claim for legal malpractice. This information does not establish, report, or create the standard of care for attorneys. The material is not a complete analysis of the topic and should not be construed as providing legal advice. Please conduct your own appropriate legal research in this area. If you have questions about this email’s content and are an OBLIC policyholder, please contact us using the information above.