Maine Employment Practices Liability Insurance

We offer employment practices liability insurance, commonly referred to as EPL insurance or EPLI, to all types of organizations in Maine. This coverage is available on a stand alone basis or as part of a package with other management liability coverages.

What is employment practices liability insurance?

In Maine, EPLI provides protection to an organization, its employees, officers, and board of directors against claims made in connection with employment-related issues such as:

The claims must be made by an employee or by an independent contractor directly or through a government agency, such as the EEOC. Coverage is also usually available in Maine for third party claims filed against an organization by someone other than an employee or independent contractor.

Which federal agency handles workplace discrimination claims in Maine?

The Equal Employment Opportunity Commission (EEOC) is the federal agency that handles workplace discrimination claims in Maine. Employees must file a charge of discrimination with the EEOC within a certain time period after the incident took place. The EEOC investigates discrimination claims and attempts to reach a settlement through mediation. If no settlement can be reached, the EEOC can either file a lawsuit or allow the claimant to file a lawsuit.

The EEOC enforces the laws in connection with the following types of discrimination: Age, disability, equal pay/compensation, genetic information, harassment, national origin, pregnancy, race/color, religion, retaliation, sex, and sexual harassment.

What factors are used to determine EPLI premiums in Maine?

There is no standard way of calculating Maine EPLI premiums as insurance companies generally develop their own rating plan. Examples of common rating factors are as follows:

The starting point of the rating process is usually a base rate per full time equivalent employee which is then adjusted based on the various rating factors.

What are some common exclusions in Maine EPL insurance policies?

EPL insurance policies in Maine contain multiple exclusions and limitations. Examples of policy exclusions are as follows:

As exclusions can vary by insurance company, applicants for EPLI coverage should carefully review the policy form before binding their coverage.

Who is considered an insured under an EPLI policy in Maine?

The Maine insured is usually the person or organization to which protection is provided under an EPL insurance policy. As an example, an 'insured person' can be defined as any natural person who was, is or becomes an employee, duly elected or appointed member of the board of directors or any other type of board, officer, partner, manager, of the insured organization for wrongful acts committed in the discharge of his or her duties as such. An 'insured organization' can be defined as the named insured, any subsidiary, and debtor in possession or equivalent entity.

What is considered an EPL insurance claim in Maine?

A claim is the event that triggers coverage under an EPL insurance policy. As an example, in Maine, an employment claim could be defined as any of the following:

In Maine, the employment claim is usually filed against an insured by or on behalf of or for the benefit of a claimant.