What it does
CG 21 47 adds Coverage A and Coverage B exclusions for "bodily injury" and "personal and advertising injury" to a person arising out of refusal to employ, termination of employment, or employment-related practices, policies, acts or omissions such as coercion, demotion, evaluation, reassignment, discipline, defamation, harassment, humiliation, discrimination or malicious prosecution directed at that person. It also excludes consequential injury to that person's spouse, child, parent, brother or sister.
Who needs it
All employers. Employment claims belong on an Employment Practices Liability (EPL) policy.
Key provisions and limits
- Applies whether the event happens before, during or after employment, and whether the insured is liable as employer or in any other capacity.
- Excludes any obligation to share damages with or repay someone else.
Quoting and selling notes
- Sell EPL alongside the CGL; this exclusion removes the Coverage B defamation and emotional distress theories that sometimes picked up employment claims.
- For OCP and Pollution coverage parts the equivalent is CG 29 51.
Selling EPL
- The exclusion reaches claims by applicants and former employees as well as current employees, and family members of the person.
- EPL policies cover discrimination, harassment, wrongful termination and retaliation claims, usually on a claims-made basis with defense costs; quote EPL alongside every CGL with employees.
- Third-party harassment or discrimination claims by customers are a separate exposure; check whether the EPL policy includes third-party coverage.
- Texas policies use CG 26 39.
