EPLI Insurance for Higher Educational Institutions
There are many ways that employers can run afoul of employment laws with certain industry sectors having a specific risk profile that make them more vulnerable to particular exposures. For example, higher educational institutions face claims around ADA (Americans for Disability Act) reasonable accommodations and denial of tenure, or failure to renew contracts. In fact, there are certain key risk factors for these EPLI claims in the education segment, according to a recent study by Advisen on employment practices in the U.S.
One of the principal EPLI risk factors for the educational sector is its highly regulated environment. You have local, state and federal agencies and regulatory bodies with vested interests in the performance and practices of colleges and universities within their jurisdictions, which results in greater scrutiny and increased litigation. Moreover, there is a wide employee base that ranges from low-level employees to highly compensated faculty and administrators. In fact, in many cases, colleges are one of the largest employers in a geographical area, which make can make them more vulnerable to allegations of discrimination practices, sexual harassment and other issues.
In addition, one emerging issue that the Advisen report found within the educational industry is the potential impact of the expanded definition of what constitutes an “employee.” A few schools have begun designating compensated athletes in their student body as employees, cites Advisen, which can significantly broaden the exposure for an insured.
EPLI insurance is an important coverage for educational institutions. It’s designed to cover wrongful acts arising from the employment process and address an entity’s exposure to employment practices-related claims. This can include wrongful termination, discrimination, sexual harassment and retaliation. What’s more, policies can also cover other inappropriate workplace conduct, including employment-related defamation, invasion of privacy, failure to promote, deprivation of career opportunity and negligent evaluation. Coverage generally applies to the company, its directors and officers, management personnel and employees for claims alleging employment practices violations brought by employees or applicants for employments.
Caitlin Morgan provides employment practices liability insurance solutions for educational institutions, including for universities, public schools, private and charter schools and schools for special needs. For more information about our insurance products, contact us at 877.226.1027.