What it does
EP 00 01 is the coverage form of ISO's Employment-Related Practices Liability program. It insures the employer (and its insureds as defined in the form) against claims arising out of employment-related practices directed at employees and applicants – the exposures that the CGL and BOP remove with their employment-related practices exclusions. The current edition in forms lists is 11 09, which replaced the 01 02 edition in most states.
Program structure
- EP 00 01 uses a single limit; EP 00 02 is the companion form with separate limits for defense and indemnity, listed for use in Maine, Vermont and Wyoming.
- Endorsements add an extended reporting period (EP 28 01), deductibles or co-payment (EP 03 01, EP 03 02), coverage for liability to customers, independent contractors, volunteers and other non-employees (EP 01 17–EP 01 20), worldwide territory (EP 01 34–EP 01 36), counsel selection (EP 01 14) and malicious prosecution (EP 01 37).
- Many states have their own changes endorsements and extended reporting period rules (for example New York's one- and three-year additional extended reporting period endorsements EP 28 20 and EP 28 21).
Who needs it
Any employer. Discrimination, harassment, retaliation and wrongful termination claims are frequent for small and midsize employers, and the CGL and BOP exclude them.
Quoting and selling notes
- Ask headcount by state, turnover, prior EEOC charges and suits, handbook and HR support, and use of independent contractors and volunteers.
- Explain the claims-reporting trigger, the retention or co-payment and how defense costs affect the limit under the form chosen (EP 00 01 versus EP 00 02).
- Third-party harassment of customers needs EP 01 17 or EP 01 20; wage-and-hour claims are a separate exposure most EPL forms do not cover.
- Small employers may prefer EPL bundled on the BOP (BP 05 89) or a carrier's proprietary EPL form.
Related forms
EP 00 02; EP 28 01; EP 03 01; EP 03 02; EP 01 17; BOP endorsement BP 05 89.
