What it does
BP 05 89 adds employment-related practices liability coverage to the BOP. ISO's program overview describes it as addressing liability arising out of a wrongful act, including a duty to defend. It fills the gap left by the employment-related practices exclusion in the BOP liability coverage.
Key provisions
- ISO files state supplemental extended reporting period endorsements for it (for example Alaska BP 06 90), reflecting its claims-made reporting structure; check the retroactive date and reporting terms on the carrier's form.
- Many states require their own version (for example Alaska, Connecticut, Illinois, Montana, Nebraska, New Hampshire, North Carolina, Oregon, Pennsylvania and Virginia).
Who needs it
Any BOP insured with employees: wrongful termination, discrimination, harassment and retaliation claims are common even for very small employers.
Quoting and selling notes
- Ask headcount, turnover, prior EEOC charges or lawsuits, handbook and HR practices.
- Explain the limit, deductible and retroactive date, and compare against a stand-alone EPL policy for higher limits, third-party coverage or wage-and-hour defense.
