EPL: Understanding the Exposures and Insurance Coverage

Course Description
This course is designed to give a moderately experienced insurance person a detailed look at (1) the liability exposures that give rise to employment-related claims and (2) the insurance policies that have been developed to cover these exposures.

The first part of the course begins by describing the most important common law (i.e., law based on judicial decisions) exposures to employment litigation and continues by discussing the leading statutory exposures to such claims. Next, the underwriting of employment practices liability (EPL) insurance is analyzed, followed by a description of methods to control employment claims. The first part of the course concludes by examining the various sources of EPL insurance coverage.

The second part of the course takes a detailed look at the specific coverage terms within EPLI policy forms, including covered persons/organizations and covered acts provisions. Next, it discusses third-party liability coverage, along with “damages” and “claim” definitions. Claims management, defense cost, and “special conditions” are also described. The course concludes with an analysis of exclusions and coverage triggers contained within the policies.

Learning Objectives
This is an intermediate level study course. Students who successfully complete this course will be able to:

  • identify five key common law exposures to EPL claims
  • recognize the significance of the various kinds of “inappropriate employment conduct” and how such conduct produces employment-related claims
  • identify the most important federal statutes relating to workplace discrimination and recognize the employment-related exposures such statutes create
  • identify the key factors used to price EPLI coverage and recognize the importance of such factors within the underwriting process
  • given relevant case information, identify effective methods of reducing exposures to employment liability claims and recognize how such methods can also lower claim settlement amounts
  • compare the various methods of obtaining EPLI coverage
  • recognize how the covered persons/covered organizations/covered acts provisions function within EPL policies
  • recognize the scope of coverage provided by (a) third-party liability provisions, along with the (b) “claim” and (c) “damages” definitions included within the policies
  • recognize the function of the (a) claims management, (b) defense cost, and (c) special conditions provisions within EPL policies
  • identify the most important exclusions found within EPL policies and recognize the operation and significance of the key “exception” wording commonly found within these exclusions
  • recognize the major components of the claims-made coverage triggers used to write EPL coverage


A basic understanding of liability insurance coverage and employment-related exposures.

CPE Field of Study
Management Services

WebCE® is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasba.org.

International Risk Management Institute, Inc. (IRMI) is the premier provider of risk and insurance continuing education and reference publications, and is considered the ultimate authority by leading insurance practitioners. Written by industry experts, IRMI courses provide the most up-to-date, practical and reliable information possible.

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