Employment practices liability, employment benefits liability & employers liability—Do you know the difference?

April 26, 2021

It’s crucial for agents to understand the differences between employment practices liability, employment benefits liability, and employers liability. Agents need to know about these three arenas to protect their insureds, and potentially themselves, too.

Employment practices liability coverage helps employers when they face claims related to workplace discrimination, sexual harassment and assault, wrongful termination and retaliation. EPLI claims can be costly—and a good policy will protect insureds.

Employment benefits liability coverage will help commercial clients if they face errors-and-omissions claims related to employment benefits. A client might need this coverage if an administrator of employee benefits fails to explain employees’ benefits adequately or accurately, resulting in an E&O claim from the employee.

And, employers liability coverage protects commercial clients against claims from employees who are not covered by workers’ compensation. In other words, an employer would need employers liability coverage if an employee blames the employer for negligence, thus resulting in an injury at work.

You can learn more about these three coverages—and how they’re related—when you register for Employment Practices vs. Employee Benefits vs. Employment Liability Issues taught by Mishell K. Magnusson, CIC, CISR, CPIA, AAI, FIPC, on Wednesday, May 12, 2021, from 10 a.m.-1 p.m. This class has been approved for continuing-education credits.

For more information, or to register for this class, log on to the PIA Northeast education schedule.

About the author…

Mishell K. Magnusson

Mishell K. Magnusson, CIC, CISR, CPIA, AAI, FIPC, is the owner of KJM Consulting & Training Inc., in Munnsville, N.Y. KJM specializes in providing a broad range of high-quality training programs to insurance agencies, insurance companies and banks in the Northeast. Magnusson is a regular speaker for PIA Northeast and is a nationally recognized leader in the insurance industry.

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