Help on EPLI Coverage

[lilylana]

Can I get sued for Not offering coverage?

can anyone advise me on EPLI coverage? Business owner never asked me to get epli coverage and I never offered him that coverage. the policy started few years ago. After couple of years he was sued by few of his employees. Insurance company denied him coverage stating that he never asked for it. Now he is upset that I did not offer him the coverage and he wants to file and e&o claim. Any suggestions?

 

[nyc2phi]

can anyone advise me on EPLI coverage? Business owner never asked me to get epli coverage and I never offered him that coverage. the policy started few years ago. After couple of years he was sued by few of his employees. Insurance company denied him coverage stating that he never asked for it. Now he is upset that I did not offer him the coverage and he wants to file and e&o claim. Any suggestions?

Did the policy have EPLI coverage available?

Probably not a few years ago but now most proposals come with a page that talks about EPLI and the consideration of purchasing it. This makes it a bit more difficult to sue because technically they were offered it.

Make it a common practice to get stuff in writing and ask. Even if it's an email.

 

[lilylana]

Thank you for your advise. Yes, the insurance company did offer an epli coverage. He wanted the same coverage that he had before and provided me his old insurance. Never talked about epli. The company usually offers the coverage electronically if the premium is below $10,000. I don't think he was ever offered coverage. E&O says there is no mistake on my part, but still...

 

[cola2001]

In today's environment, unless you had it in writing that client declined coverage, it's a claim. Especially if the carrier offers it.

 

[karinah]

If the client ordered property and liability insurance for his business, there is no automatic assumption that he also might need EPLI coverage. Of course, it is good for the broker to offer the coverage. However, if the insured does not communicate his need for EPLI, there is no grounds to claim for a loss.

 

[reedrhoden]

I disagree. As insurance professionals it is our responsibility to survey a clients full risk potential and advise products accordingly. Otherwise what value is the agent adding to the transaction? EPLI is one of if not the most undersold product out there and most insureds are more likely to have an EPLI claim than a property claim. At the very least it's good practice to have an agency checklist listing all products the agency offers and have them initial next to the products they are purchasing. You can add a statement at the bottom saying they understand what they are buying and to contact you to inquire about any other product listed.