What is EPLI in D&O policy?

A D&O liability insurance is designed to protect directors and officers against personal liability and financial losses arising from a wrongful act committed or allegedly committed.

Employment practices liability insurance (EPLI) extension under the D&O Liability insurance protects an organisation from employment-related claims. EPLI ensures that the company and the directors are covered for its own defence and settlement expenses if an employee = makes a claim against it. This extension has become one of the most common and prevalent risk exposures for directors in the current digital work atmosphere.

The #MeToo movement has triggered an outpouring of pent-up rage against sexual harassment at workplaces. It has made corporates and employees more sensitive and vigilant in instances of harassment thereby giving rise to accountability for people in positions of power. It has now become vital that all companies invest in a D&O Policy as the surge in public awareness and courageousness has given rise to higher D&O litigation risks, either perceived or factual.

It’s a common misconception that D&O cover is mostly required for large companies. In fact, smaller businesses may need the protection just as much as large, deep-pocketed corporations. It’s therefore important for all businesses to consider the legal ramifications of sexual harassment and other workplace behaviour.

While EPL is often available to large organisations on a stand-alone basis, it may also be attached to a D&O policy as an optional insuring agreement, for the payment of extra premium. The general risk exposures that covers under the EPLI coverage include:

• Wrongful Termination
• Breach of employment contract (not termination)
• Harassment / humiliation
• Discrimination at work
• Defamation
• Employment conditions / safety and Other employee issues

PlanCover.com an insurance broker licensed by IRDAI has been supporting technology startups, small and medium businesses, not for profit companies and large companies with tailor made D&O liability insurances. Reach out to them for understanding the EPLI extension cover under your D&O liability insurance today.