What You Need in an Employment Practices Liability Insurance Policy
12 considerations when purchasing or reviewing this type of insurance policy.
  1. 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.
  2. 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 limit, and the insurer incurs defense costs of $75,000, this reduces the coverage limit to $225,000.
  3. Carefully examine the exclusions under the policy. Common exclusions include claims made under the Fair Labor Standards Act (for overtime pay, or the minimum wage), claims resulting from layoffs, claims under the Consolidated Omnibus Budget Reconciliation Act (COBRA), and claims under the Employee Retirement Income Security Act (ERISA). Some EPLI policies exclude punitive damages, while others do not. However, note that several states prohibit insurance policies from insuring against punitive damages.

Log In For Full Access

Interested in becoming a member? Learn more.

Related Topics:
Posted: December 19, 2018
View All
from our store
Best Practices for Technology Usage

Best Practices for Technology Usage

Establish policies and best practices to govern the use of technology for church staff.
Your Guide To Employee Handbooks

Your Guide To Employee Handbooks

If updated regularly, an employee handbook can offer valuable legal protection against civil court claims made by disgruntled staff members.
Understanding Labor Laws

Understanding Labor Laws

Regulations that pertain to hiring, firing, paying, disciplining, and supervising ministry employees.
Avoiding Church Lawsuits

Avoiding Church Lawsuits

Create proactive procedures to avoid common reasons why churches most often go to court.

ChurchSalary

ChurchSalary

Experience a whole new way to set compensation. Eliminate the guesswork – get access to detailed compensation reports in just minutes.