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Commercial - Employment Practice Liability
Third party EPLI (Employment Practices Liability) refers to claims made by non-employees, usually customers, who allege that an employee engaged in wrongful conduct, typically sexual harassment or discrimination. In absence of a specific endorsement for third-party claims, EPLI forms do not cover the exposure. This gap in coverage results because EPLI policies require that covered “wrongful acts” be directed against employees or applicants for employment. Moreover, coverage for third party employment practices liability claims is precluded under commercial general liability policies by endorsement CG 21 47. Third party liability coverage is generally available by endorsement for additional premium and should be seriously considered by firms that are confronted by these exposures.