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I have the opportunity to sell another line of insurance. In the last decade or so EPL (Employment Practices Liability) has "taken" off. With G/L and small BOP's generally excluding EPL (or very stripped down versions).

My question to you all is.........

Any word tracks that may help in discussing with your clients?

Have you found it to be a successful a line for your agency? Do small businesses buy it? Do they care?

Do you offer it? To every client? Why and why not?

I see the benefits of it, and just looking to see how I can add it to my arsenal.

Any advice is kindly appreciated.

To avoid an E&O suit, definitely offer it.

Get a basic knowledge of the employment laws of your state and/or the states the insured operates in. There are probably some good articles online (Google) that can help provide this information. Mention the word liars...I mean lawyers are pursuing EPLI suits. If they accept it, great. If they don't, document it in writing to them that they rejected the coverage. Check with your best MGA as to their markets.

I offer it to every client. Most decline unless they have had to deal with nasty HR issues. It is a very profitable line of insurance if you work with, restaurants, Real Estate/mortgage, doctors, attorneys or auto dealers.

A prudent agency will have a set procedure with regard to EPLI coverage. You should have a list of standard fringe coverages that are offered as an option every time you present new and renewal business. We call our's a suggested coverage page. This page has a long list of coverages and each coverage is addressed and then signed off on.

I think in today's litigious society an agency must protect themselves by offering essential coverages on a regular basis to every client regardless of size or type.

EPL related claims in our state are filtered through the state's Human Rights Commission, and the comission will grant or deny permission to sue. They get on average 100 complaints per month. Our agency requires an EPL quote or signed decline on every commercial account. Typically smaller accounts decline the coverage. Larger, shall I say, more educated insured's understand the need for coverage. We have many carriers that can accomodate pretty much anything we send them. Our office (one of 23) had 6 EPL (client) claims last year, ranging from harassment to Whistleblowers allegations.

EPLI coverage is indeed something you need to offer to all your clients who have employees. The key is getting them to take it. Most small business owners believe that if they have a policy in place this can't happen to them. They are also under the mistaken impression that as long as they are proactive in dealing with these issues they are in the clear. I have one client that is my "poster child" for this coverage and I use their experience as a reason why everyone needs this coverage. Retail store - male manager accused of sexual harrassment by lower level female employee. Client had a written policy which every employee signed at hiring. As soon as client was notified of the harrassment allagation, manager was put on suspension and interviews with all employees were conducted (as required by written policy ). Claim was established and manager was fired. All of this was done in both a timely manner and under the guidelines of the EEOC. At this point client was confident that he was in the clear - he had done what he was supposed to do to protect his employees. Not so. The EEOC (on their own) began an investigation which led to my client being fined $80,000 - just because it happened! Not to mention the $60,000 in attorney's fees. Needless to say client now wishes he had purchased the coverage.
I tell clients that unless they have a dedicated HR person who is fully schooled in dealing with these matters that they are at risk of losing everything (settlements on these type of claims can go beyond the corp to their personal holdings) and even then it will cost them dearly in atty fees. This happened in AZ which is a right to work state with very lax regulations.