Employment Practices Liability (EPL) coverage is designed to protect employers from claims of discrimination, harassment, wrongful termination, and other employment-related issues. EPL coverage typically includes both defense costs and indemnity for covered claims, which can help protect your ministry from financial losses and damage to your reputation.
For Christian ministries, EPL coverage is especially important because of your unique employment needs and faith-based practices. These practices can sometimes create employment-related risks and exposures that are not covered by standard EPL policies.
Examples of these faith-based practices include:
Faith-based employment can create unique risk exposures. That’s why its important to review your EPL policy with a specialist who understands these risk exposures, as well as your First Amendment protections as a religious employer.
A specialist broker or insurance carrier can help you design an EPL policy that specifically addresses your ministry’s needs and provides adequate protection against potential claims.
Like many professional coverages, Employment Practices Liability coverage is often written on a ‘claims-made’ basis rather than an ‘occurrence basis’. While occurrence based coverage allows the policyholder to report a claim indefinitely after the policy period, claims-made coverage adds additional reporting criteria including a time-limit on when a claim can actually be reported.
Many ministries purchase claims-made coverage for the cost savings, however expired coverage can create severe financial exposure. For example, many claims do not come to light until years after the policy period has ended. Additionally, we have seen legislatures repeatedly extend the statute of limitations on old court cases, allowing plaintiffs to sue ministries for claims from decades prior.
Much of this risk can be mitigated by switching your coverage to ChurchWest. Not only do we offer EPL coverage on an occurrence basis, but we also can provide you retroactive coverage to insure against any gaps created by your expired claims made policies.
These are a few EPL scenarios that we see ministries face. While every situation is unique, these scenarios help illustrate the types of employment-related risks that EPL coverage can protect against.
In summary, Employment Practices Liability coverage provides vital protection for your ministry against claims of discrimination, harassment, and other employment-related issues.
Worried about the cost? A ChurchWest Ministry Insurance Advisor can bundle your tailored EPL coverage with other ministry specific coverages as part of a comprehensive insurance package. By bundling your coverage with ChurchWest, you can get the best protection at the most affordable price.
Click the “Get a Quote” button at the top of this screen to contact your local advisor, or explore our other coverage pages to learn more about guarding your ministry’s finances.