EPLI Insurance: Cost, Coverage & Providers

Cody Cromwell
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EPLI Insurance Providers

Insurance providers compete for the business of these professional groups. This means the prices may vary by provider, and you may want to shop around prior to renewal or enrollment. For example, fee schedules vary among providers for some items, such as disability insurance, as well as some geographic areas within the same provider. The same coverage can have widely different costs, sometimes even within the same provider.

Consequently, most professional groups that provide insurance for this group of workers are self-insured.

There are a number of different types of professional groups that enjoy special discount rates or special coverage from these insurance providers.

Some of the most common examples of coverage include:

  • Public Adjustment
  • Medical
  • DUI/DWI-related penalties
  • Professional liability
  • Workers’ compensation
  • Insurance providers compete for business of these professional groups, meaning the prices and coverage may vary by provider. You may want to shop around for the right coverage at the right cost for your employees.

Because this is a marketable business risk, you might consider purchasing this insurance for your employees through the employer group that provides their health and dental benefits.

Top Employment Practices Liability Insurance Providers

PLI or EPLI is a form of insurance that covers your business from liability lawsuits and crimes that employees commit on the job. This is a general explanation to what it is, not a complete coverage assessment on what it does and does not cover. EPLI is a way to show your organization that you care about their employees. This is important because it creates a certain culture in an organization. Be it large or small, EPLI will protect against any kind of situation that might arise.

The cost depends on the resource that you need to protect. So the amount you pay will be related to the resources that you need to protect and the risks in doing business. The more the resources and the risks, the higher the premium.

Definitions

Education or Instructional: A presentation designed to earn instructive knowledge or skill

Structural Piece: A predesigned component of equipment made to sustain a variety of wear and tear

Activities-based: The practice of undertaking particular tasks in order to serve a purpose

Occupational diseases: A disorder or the ill effects of an occupation or of a business

Business: A corporation or company whose primary objective is to make a profit

Employee: A person who works for credit for the benefit of the employer

Employes: People working for the business

Why Cover Your Business?

The Hartford

Is Face to Face Lender: Homeowner Insurance by the People, For the People.

EPLI is short for EndPoint Protection Lending Insurance, or EndPoint for short. This insurance type is available through Hartford for FHA loans and USDA loans.

EPLI providers believe in transparency, making it easy for borrowers to understand and choose their loan options. They work directly with the borrowers and their advisors to provide viable protection at a reasonable rate.

Their goal is to help borrowers with the home loan process so they can concentrate on finding a new home and starting their new chapter in life, which includes becoming homeowners.

EPLI will cover two types of EPLI insurance:

  • PROP (portable property) insurance, also known as a mortgage insurance policy
  • Actively managed EPLI (end-point protection lending insurance)

Expensive or inapplicable coverage limits often result from homeowners policies or auto insurance policies that don’t address the unique risks of individual mortgages.

With EndPoint, lenders can insure mortgage loans without worrying about property coverage limits, as no property limits apply.

AmTrust

CoverWallet

In the business of insurance, insurance coverage price quote are often given in one of two ways. You can either negotiate a figure or you can purchase term insurance based on an ‘index’.

Indices are based on an assessment of the most likely likelihood of a specific claim. In each case, the cover and cost is subject to change based on the specifics of your policy.

Here’s a look at the coverage options provided by CoverWallet in partnership with EPLI for all its clients.

Types of Insurance Coverage (EPLI Insurance Coverage)

Property Coverage: Covers a wide variety of risks including:

  • Risk of burglary, theft, accidents, vandalism, weather and fire
  • Risk of loss caused by strangers, public liability and workers’ comp
  • Risk of damage caused by hail
  • Risk of damage caused to property and contents

Agency Coverage: Covers both landlord and tenant insurance

Scheduled Property Insurance (SPI): Re-insures all types of risks as well as covered additional risks like:

  • Dwelling coverage (homeowners’ insurance for your property)
  • Personal property coverage (at-fault auto insurance for your stuff)
  • Landlord liability coverage
  • Readers and Writers Insurance (RW)

Allstate

EPLI Insurance: Cost, Coverage & Providers.

A lot of people assume that enrolling in the Teachers Insurance and Annuity Association of America (TIAA) means they are automatically covered for life insurance coverage. They might even start a new TIAA life insurance plan because the employer made a teacher’s insurance suggestion to them.

Many people are surprised to learn that the government doesn’t require TEA membership for life to cover life insurance. TEA life insurance could be an attractive deal for someone with long term health problems and can provide a decreasing life time cost. With an employer sponsored health insurance plan, there isn’t a lot of pre-tax dollars that you can invest with a company, and there is also a long term cost of health insurance, at least in the early years.

State Farm

And United Services Automobile Insurance Company (USAA) Do the same thing; different names. They pre-approve your car and any non-wreck related injuries are covered by a higher limit insurance policy for 3 years.

What Employment Practices Liability Insurance Is

Employment practices liability (EPLI) insurance provides coverage for businesses that potentially face liability in the workplace. This type of insurance is similar to general business insurance and business errors and omissions insurance, but it covers claims that are related to employment and wrongful termination. These claims can include discrimination, sexual harassment, assault or injury on the job, and wrongful discharge.

EPLI is often recommended to businesses that hire migrant workers, small businesses, and businesses that provide services to the general public. Many large public and private companies and organizations have elected to offer EPLI as standard practice, so you don’t have to be a large employer to benefit from hiring or firing a worker.

What EPLI Insurance Covers

Electronic purse or loss insurance, also known as EPLI or EPLI insurance is a type of financial protection used by some consumers to reimburse losses they may incur if they lose their wallet, purse or other personal belongings. The coverage generally provides reimbursement to the replacement cost of lost assets on the condition that the policyholder must file an individual claim within a specified amount of time to take advantage of the benefits. The insurance covers the replacement cost of any stolen property which is covered under the policy and should also protect against items such as damage, fraud and forgery.

Most of the services offered are associated with credit and debit cards and debit transaction cards. Other support options are available but are not provided through this page. This type of insurance is not intended for motorcycle, truck, home or rental property and will not cover loss or stolen checks. However, some items are sometimes covered, such as eyeglasses, jewelry, watches and even cell phone.

EPLI insurance covers a particular set of transactions including cash withdrawals from a debit card and ATM transactions. That means that the insurance only provides reimbursement under certain circumstances. For example, if you are in the United States, a typical insurance policy may provide a 15-day limit for withdrawals in a row and an unlimited number of withdrawals during that period. But if you have a credit card from a foreign bank with which you do a cash withdrawal, your specific card limits will apply and likely provide for a longer timeframe.

What EPLI Insurance Doesn’t Cover

The Affordable Care Act’s short-term health plan option is another form of insurance and works in a similar way.

EPLI coverage under your employment group health plan will kick in if you purchase one of these plans to cover medical expenses you have during the first 60 days. It’s important to note that this health insurance will not be adequate for long-term health care.

Your job-based benefits will not cover expenses you have over 31 days. If you’re looking to avoid a mid-term medical bill, an individual policy probably won’t be adequate for you.

If you’re unsure about whether your job-based benefits will cover you after the month-to-month health insurance benefit ends, talk with your employer to find out.

For a more complete discussion, see our post about Essential Health Benefits (EHBs) options for small businesses.

Also, since many discussions about EPLI are about individual coverage, we want to emphasize that the cost for plans under a job-based health plan are based on the number of employees in a group plan. There is no way to predict what your costs might be based on how many people are enrolled in your group plan.

EPLI Insurance vs Employer’s Liability Insurance

EPLI Insurance is a unique type of insurance coverage whereby employers are protected against negligent acts or omissions occurring on the part of employees and it protects them against litigation. This coverage is typically abbreviated to EPLI.

EPLI and an Employer’s Liability Policy should not be confused with one another.

Employer’s Liability and EPLI are two separate types of coverage, and a comparison table provides a handy way to compare the four types of coverage. These coverages are best described as an ‘open policy,’ as opposed to an ‘all risk policy.’

EPLI covers the employment practices of your business and is subject to all the same perils as the business. Meanwhile, an Employer’s Liability Policy only covers your business. Because of this, an Employer’s Liability policy will cost less than an EPLI policy and is less comprehensive.

Let’s break down the advantages and disadvantages of each coverage type. See the table below for a comparison.

Claims-made vs Occurrence EPLI Insurance

The coverage of an EPLI insurance policy depends on whether the policy covers claims that occur as a result of a loss after the policy has been issued or a loss that is reported after the policy has been issued. Well-written claimant package language should be able to avoid catastrophic underwriting, which is why it is an important aspect of care in the policy underwriting process.

An owners policy will typically have a specific exclusions clause prohibiting any liability of the insured, with limited exclusions predicated on the standard of care. In EPLI underwriting, when a loss occurs, the insurer would respond based on the policy exclusions and the insured’s standard of care looks to have been met, the policy would not be triggered and neither the insurance company nor the insured would incur a loss. However some exceptions to this standard may apply.

Providers of EPLI are generally focused on claims-made focus, meaning that they are only on the hook for claims and lawsuits which occur during the term of the policy. The most common type of claims made policy is a limitation of liability policy.

An occurrence policy on the other hand is interested in the occurrence of a loss and is not interested in claims that occur during the policy term. Occurrence policies are often associated with big liability cases or even worse, like catastrophic cases for which EPLI coverage may not be available.

EPLI Insurance Costs

Employee purchasing life insurance is a very common way for companies to help out their employees. Unfortunately, since it is a company expense, a lot of organizations are reluctant to subsidize it, but if their employees sincerely need it, it may be an opportunity to help them achieve better overall retirement outcomes. There isn't a company out there that doesn't want its employees to have the best retirement possible, so should the situation call for it, they are often willing to cover the costs. The amount of your benefit will depend on your age, family situation, and the amount you purchase.

Generally, life insurance costs several thousand dollars per year, so it is worthwhile to at least consider purchasing the coverage if you are not significantly insured under life insurance terms at your job. Not only will it give your family a much better chance of being provided for in the event of your death, but it will also allow you to avoid the obligation of having a will. Your employer will be managing your life insurance benefits for you as well as processing your death benefit. Overall, it is a much better and simpler solution that will allow you to concentrate on your work while affording you the same coverage as with any other life insurance plan.

EPLI Insurance Costs & Deductible

EPLI Deductibles & Self-insured Retentions

Due to the high deductible and high monthly premiums, many people assume that EPLI is a high-cost insurance option. But that’s not the case. In fact, compared to other individual insurance plans, EPLI has significantly lower costs and lower monthly premiums.

However, if you think you are going to need more medical care than your deductible, self-insured retention and annual maximum are two measures that you can consider.

A self-insured retention is an amount that you will pay out of pocket for covered health services. Conversely, a self-insured retention means that you will not be covered by the EPLI plan for covered health services that you spend money on yourself.

An annual maximum is the maximum that you can spend out of pocket on health care before the plan will cover the costs for you.

Who Needs EPLI Insurance

EPLI insurance is for a variety of people who want to ensure they are protected should a catastrophic, pain and suffering type injury or illness occur.

It is critical that you consider whether or not you want to be protected against pain and suffering.

However, it is most important to consider if you will need to be protected for physical, emotional, or both (physical and emotional) pain and suffering.

Physical pain and suffering includes some traumatic injuries that are unfortunately common. These include spinal cord injuries, knee injuries, shin splints, sprains and strains, back injuries, neck injuries, diabetic ulcers, and more.

It is important to know that if these types of injuries/illnesses are not of a catastrophic nature, then they may not be covered. While catastrophic injuries are hard to recover from, non-catastrophic injuries will be expensive, uncomfortable, and may not be even recoverable. But non-catastrophic injuries are common, and if one of these injuries happens to you, you may not be able to get the full amount of coverage that you need.

Emotional pain and suffering includes psychological trauma as well as the emotional and emotional distress that it causes. These can include anxiety and depression and may cause you to be unable to work, sleep, or engage in everyday life activities, if not handled and resolved.

Other Policies Associated With EPLI Insurance

EPLI insurance gives you coverage for a range of protective devices worn on your head. The types of EPLI coverage in the policy include:

  • Caps
  • Kepis/Hats (except for motorcycle headsets)
  • Snorkel Masks
  • Crown Series Spray/Aerosol Hoods

Caps and Hats: Caps and hats are generally the most expensive types of protective clothing to replace. This is because their design is usually tailored to the needs of its wearer and is not mass produced. Therefore, the ability to replace the kinds of caps and hats covered by an EPLI policy usually depend on the degree of customization the equipment needs.

Snorkel Masks: Snorkel masks are typically made from rigid but semi-flexible PVC. This makes them both lightweight and durable. Snorkel masks typically have a separate piece covering the user’s head; this is usually attached by two to four adjustable straps.

Crown Series Spray/Aerosol Hoods: Crown Series Spray/Aerosol Hoods are typically made of a tight weave silicone making them both durable and lightweight. Since these hoods are used in the heat of summer and/or for spraying pesticides, they are built to withstand the strong weather conditions of their tasks.

Tips on Getting Employment Practices Liability Insurance

Employers want to be sure their company is covered, as well as their employees and anyone their company hires to work. It is important to have EPLI Insurance in place for two reasons.

First, the insurance will cover any and all claims that may arise from acts of negligence in the workplace. This includes any potential litigation that can result from any accidental injuries, as well as any intentional acts that include a breach of safety regulations and company policies.

Secondly, the insurance will protect the company and its assets. This might be important if, for example, an employee were to take money out of the company’s safe and leave a note saying that the money belongs to you. This kind of incident can lead to financial damage and loss of company resources, potentially totalling millions of dollars.

Why is EPLI Insurance so Importantly?

Employers generally carry what is referred to as a General Liability policy. This covers them against a variety of claims made by any combination of individual workers, companies, investors, and clients of the company they work for. The EPLI policy can be added onto this as a special policy, covering additional claims.

Evaluate Your Insurance Needs

Reduce Your Risks Before You Apply

When you think of saving money and being thrifty, you probably think of buying cheaper fuel, clothes, food, etc. But consider spending a couple of minutes saving money on your auto insurance premiums. Don’t fall into the trap of expecting cheaper premiums because your rate is already low. The most common cause for low premiums is not insuring, and by simply purchasing insurance, you can eliminate the very causes of your low premiums.

Safe Driver Discounts
Anytime your driving history has been relatively clean, your premiums will be reduced. During the application process, you’ll get a list of your driving statistics which you will use to compare to the 16 factors of your motor vehicle record (MVR). Just remember to be honest and truthful so you don’t raise any red flags with your insurance company.

Higher Education
Membership to a higher education organization will lower your premiums. It doesn’t have to be an expensive association; an alumni club, ball club, or community college will do just fine.

Choose Your EPLI Coverage Limits Wisely

If you’re planning on leaving your house without house keys, you should consider purchasing home insurance. However, you’ll need to choose a type of coverage that allots a certain amount of money to cover your home’s replacement value.

A home insurance policy (overall liability insurance) protects you (the named policyholder) from paying the cost of damage to another person’s property (third-party property damage liability) in the event of an accident or maliciously inflicted harm.

There are two types of coverage for property damage:

Replacement Cost : Covers the full replacement cost for a home, with little or no deductibles. However, the coverage is limited to the true market value of a home minus deductible amounts.

Covers the full replacement cost for a home, with little or no deductibles. However, the coverage is limited to the true market value of a home minus deductible amounts. Actual Cash Value: Covers only what the home is currently worth, minus deductible amounts. Although the policy covers a home’s current value, you will be responsible for the difference between the current value of your home and the actual cash value of your home.

Weigh SIRS & Deductibles Against EPLI Costs

What type of EPLI policy is right for you? There are as many different options as there are insurers offering them. But you don’t have to tackle this decision on your own … the information below will help you weigh the risks of a SIRS versus a SIRS, and whether or not you want or need coverage beyond what’s provided today by the major EPLI carriers.

As you can imagine, this is a complex topic, so we’ve broken down the options into two groups:

… policies offered by SIRS carriers that are also available a standalone … ;

… policies that are only available as standalone EPLI policies.

Cost Comparison A FEW IMPORTANT THINGS TO NOTE:

{1}. All premiums quoted are for policy terms of one year … they do not reflect the cost of long-term coverage. Most EPLI policies require two-year premium commitments (six months before the policy term and six months after the policy has expired).
{2}. We are not recommending any specific EPLI carrier or policy; we are merely disclosing the features and benefits of each.

Employment Practices Liability Insurance Frequently Asked Questions (FAQs)

Employers in certain industries like construction, heavy industry and transportation face liability risks that are greater than the average business. For employers in such industries, it’s important to have insurance that covers incidents where workers are hurt on the job. That is what Employment Practices Liability Insurance (EPLI) coverage is for. EPLI is insurance that covers claims for workplace lawsuits and accidents. It’s the most basic kind of insurance that any business must have to protect itself.

What does EPLI insurance cover?

EPLI insurance covers incidents where employees have been hurt on the job. In the event of an incident, the insurance covers financial expenses such as attorney fees and compensation to employees who are hurt in the process of their job. EPLI insurance is ideal for businesses that operate in high risk industries. If you are a business owner in the construction, heavy industry, transportation or health care industries, make sure you have EPLI insurance.

Do you need EPLI insurance?

Businesses in high risk industries are required by law to have EPLI insurance. But, if you are a low risk business, say an accounting firm or a marketing firm, you may choose to skip the EPLI insurance and buy other kinds of insurance.

How much does EPLI insurance cost?

Does EPLI insurance cover independent contractors?

If you’re a contractor or freelancer who offers services on the EPLI landscape, more than likely you’re required to have EPLI insurance. This is done to cover both yourself and your clients. As an independent contractor, you are primarily responsible for yourself. However, there are times when your clients are involved. Maybe a client purchased materials from you, or perhaps you’re using equipment on a job site that belongs to your client. Your client is responsible for paying for those expenses. It’s important to remember that if your client didn’t give you permission to use their property, that’s considered trespassing. They are liable for the damage caused by your company, and they could potentially be held responsible for the penalties. Since you’re responsible for yourself, you’ll want an EPLI policy to cover you in case you or your company is at fault.

When you purchase an EPLI policy, your client can also be covered. Your client is responsible to your company, and you also want to ensure that your company is covered in case you end up in a situation where they are at fault. The amount of damages they would be responsible to cover in the case of an accident or incident can be quite extensive.

Does EPLI insurance cover wage & hour claims?

Employee paid Liability insurance, or EPLI, (also known as coverage for injuries sustained on the job) can cover specific wage & hour claims, such as a missed meal break when your stomach pains flare up due to a food allergic reaction.

It also protects you against the aggravation of missing work time when your breakfast cereal makes you sick. However, EPLI will not cover claims for wrongful termination, discrimination, sexual harassment, or certain other types of claims.

A major benefit of EPLI is that it is a low cost for low income earners but can be an affordable solution for the self-employed.

EPLI coverage consists of two parts. The first provides occupational coverage while the second provides non-occupational coverage.

EPLI insurance can be a good choice when you’re self employed, or part-time, or when you don’t have health insurance.

It can also be a good choice if you’re not sure if you have all of your bases covered and don’t want to try to cover employee benefits.

The basic membership plans for EPLI coverages are similar to an employee’s health insurance. There’s a specific deductible, copays, and coverage limits.

Is EPLI included in workers’ compensation insurance?

Usually, Employers’ Liability Insurance (EPLI) and workers’ compensation are two different affairs. However, there are quite a few instances when the two forms of insurance cover policies are contracted with each other. In such cases, EPLI policies fall under the coverage of workers’ compensation insurance.

EPLI helps insurances companies protect themselves against three other parties including employees, their beneficiaries, and policies holders. While claims made by employees are usually covered to some extent, employers’ liability policies help insurances in covering their liability to workers’ compensation claims.

While EPLI is normally applicable on a single policy basis, there are a few instances where they are contracted as a package or a bundled deal that can include workers’ compensation as a part of the insurance.

EPLI is generally purchased by insurance companies to cover their liability of accidents that happen to their employees while at work.

These can include:

  • Minor injuries that don’t require medical attention
  • Accident compensation
  • Court costs
  • For employers who hire workers on a temporary and part-time basis

Bottom Line

Why EPLI Is the Best Choice!
Your business insurance policy is the bedrock on which your business rests. It forms a foundation for stability and growth, protecting your business, your family, your assets, and your livelihood.

However, despite its vital importance, starting a business is an enterprise that puts your personal finances at risk, and it’s important to ensure that you’re protecting them as best as you can.

The Entrepreneurial and Professional Liability Insurance (EPLI) market is a ground-breaking new development in the field of business insurance for solopreneurs, freelancers, professionals, or small businesses.

Like the name of this new segment already implies, EPLI policies are primarily designed for self-employed or owner-operated companies and do not generally offer business insurance coverage for employees.

Why You Really Need EPLI

Fortunately, the foregoing is not a deterrent to taking EPLI out as insurance, and there are many compelling reasons to do so even if you’re not in a position to act alone.

Business owners need to ensure that their business can continue to operate effectively, and EPLI insurance can protect you against certain risks that might otherwise threaten to bring down your business.