What is BOP Insurance, and what’s covered under a BOP?
A business owner’s policy, or BOP, usually includes the following:
General Liability, which covers third party injuries that occur on your property as well as associated legal fees. It can also cover “advertising injury,” which includes offenses like libel and copyright infringement.
Property Insurance, which covers repairs to your place of business in the event of damage from fire, water or even from illegal activity.
Business Interruption Coverage, which will reimburse the business for profit loss due to closings from covered events like a fire, major storm, hacking event, or illegal activity.
What is EPLI and what does an EPLI policy cover?
Employment practices liability insurance (Trade name EPLI or EPL) is a type of liability insurance covering wrongful acts arising from the employment process. The most frequent types of claims covered under such policies include: wrongful termination, discrimination, sexual harassment, and retaliation.
EPLI specifically protects the employer against claims made by employees alleging discrimination (based on sex, race, age or disability, for example), wrongful termination, harassment and other employment-related issues.
Small or new businesses are often the most vulnerable to employment claims. That’s because they usually lack a legal department or employee handbook detailing the policies and procedures that guide hiring, disciplining or terminating employees.
Large to Mid-size corporations typically have substantial employment practices insurance coverage in place and are prepared to deal with just about any employment lawsuit.
EPLI coverage is usually written on a claims-made basis. This means the incident resulting in the claim had to occur during the coverage period. Because employment claims often come months or even years after the alleged incident, an employer might be vulnerable if the insurance coverage was dropped or if tail coverage (liability insurance that extends beyond the end of the policy period) wasn’t purchased.