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Claims Corner: Employment Practices Liability Insurance Discrimination Claim

July 9, 2020 Avalon

Claims Corner: Employment Practices Liability Insurance Discrimination Claim

An administrator in a Customs broker’s office requested her hours be adjusted so she would be able to take care of her sick father during the morning. Her supervisor denied the request. The supervisor told the admin that the office needed her during core working hours, and if she wasn’t happy with her schedule, she could find another position elsewhere. The admin resigned and sued the Customs broker for $250,000 under the Americans with Disabilities Act, alleging failure to accommodate and discrimination based on being associated with a disabled person.

The claim was covered under the broker’s Employment Practices Liability Insurance (EPLI) policy. The case was settled at $100,000 and since EPLI also covers legal fees, the broker’s legal fee of $15,470 was also paid.

EPLI exposures can impact businesses of any size and the cost of an average claim is on the rise. This coverage is crucial for today’s litigious environment. For additional information on EPLI coverage, contact your local Avalon representative.

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