Third Party Employment Practices Liability
Employment Practice Liability Insurance (EPL) covers allegations from employees against other employees and/or the employers itself based on discrimination, harassment, wrongful termination, retaliation and other specified “Wrongful Acts”. This is what is commonly known as “First Party” EPL coverage, the first party being the employee as the claimant.
So, what is a “Third Party” EPL claim? Allegations of discrimination or harassment against the employees and/or the employer from “Third Parties” with whom the employees come in contact while conducting business on behalf of the organization.
Third Parties can include:
➢ Independent contractors on the organization’s premises, like cleaning people.
Classes of business with Third Party EPL exposure include:
➢ Artisan contractors (plumbers, landscapers, etc.)
➢ Business services (accountants, consultants, etc.)
➢ Commercial daycare centers and summer camps
➢ Fast food restaurants
➢ Fitness Centers
➢ Hotels and motels
➢ Retails stores, including convenience stores and supermarkets
Many employers do not realize that they have a gap in their insurance coverage that leaves them open and vulnerable to lawsuits from customers, clients, vendors and suppliers.