Employment disputes are one of the most common sources of church litigation. However, many churches are not insured against this risk. If you are looking at getting employment practices liability insurance (EPLI), these 12 considerations will help you evalute it.
Check to see who is covered under the policy
Generally, the employer and its officers, directors, and employees are covered. But, some policies exclude part-time employees and self-employed workers. Ask the church’s insurance agent about covering these persons if they are excluded.
Check the amount of coverage to be sure it is adequate
Also, note that under most employment practices liability insurance (EPLI) policies the costs of providing a legal defense for the employer come out of the policy limits. To illustrate, assume that a church has an EPLI policy with coverage of up to $300,000. If defense costs come out of the coverage ...