Viking Safeguard XX: Strengthening the Shield – Advanced EPLI Strategies for Lasting Protection

Hello, Fellow Leaders,

Just as a Viking leader fortifies their village against internal strife, Employment Practices Liability Insurance (EPLI) serves as a powerful shield, defending your business from the potential risks posed by its own crew.

But as any wise leader knows, a strong defense must be constantly evaluated and reinforced to stay effective. EPLI is not a "set it and forget it" type of coverage. It requires ongoing attention to ensure that your business is protected from all angles, as the landscape of employee practices continuously evolves.

In today’s complex environment, where workforce dynamics and legal requirements shift frequently, your EPLI policy needs to be more than just a basic layer of protection. It must be a well-fortified shield that accounts for both anticipated and unforeseen threats. This means ensuring that your policy is comprehensive, covering both immediate risks and long-term exposures that could emerge over time.

Let’s explore advanced strategies to further fortify your EPLI coverage. As you reinforce your defenses, it’s essential to focus on these key areas that can either strengthen or expose vulnerabilities in your shield:

1. Defense Costs: Strengthening Your Shield Defense costs can either fortify your shield or weaken it if they’re included within your policy limits. It’s critical to make sure your EPLI covers defense costs outside the policy limits, ensuring your coverage remains intact even during extended legal battles.
2. Retaliation Claims: Guarding Against Lingering Threats Retaliation claims can emerge after a settlement or resolution, posing a new threat to your business. Make sure your EPLI provides robust protection against retaliation claims, so your defenses hold strong even when old disputes resurface.
3. Wage-and-Hour Claims: The Hidden Weak Spot Wage-and-hour disputes can be a hidden weak spot in many EPLI policies, as they are often excluded or sub-limited. This hidden risk can be overlooked, so ensure your policy addresses wage-and-hour claims and provides adequate protection in this area.
4. Prior Acts Coverage: Reinforcing Your Legacy In leadership, your past actions shape your present and future. Similarly, your EPLI coverage should protect your legacy by covering claims based on actions before the policy period. Confirm that your policy includes prior acts coverage to shield your business from past decisions.
5. Tail Coverage: Preparing for Future Battles Consider what happens after leadership transitions or business operations wind down. Tail Coverage is essential for maintaining protection beyond the original policy period. Ensure your policy has options for extended reporting periods to protect against claims made after the policy expires.
6. Internal and External Threats: Expanding Your Protection While EPLI primarily protects against internal risks, it can also extend to external threats. For instance, it may cover claims from third parties, such as clients or vendors, for issues like harassment or wrongful acts. Ensure your EPLI offers broad enough protection to safeguard against both internal and external challenges.

Strengthening Your EPLI Shield By ensuring your policy covers these critical areas, you can build comprehensive and resilient EPLI coverage—ready to protect your business from both internal and external threats.

As the workplace continues to evolve, now is the perfect time to strengthen your EPLI shield and prepare for future challenges. Remember, the most successful Viking leaders weren’t just skilled in battle—they ensured their defenses were ready for all eventualities.

Stay vigilant, Marianne Halvorsen, CPCU, AIS