Many employers do not realize that they have a gap in their insurance coverage that leaves them vulnerable to discrimination and harassment lawsuits from customers, clients, vendors, and suppliers. Standard EPLI policies only provide coverage for lawsuits brought about by employees or prospective employees, and most commercial general liability (CGL) policies specifically exclude coverage for harassment and discrimination. That’s where third-party EPLI comes in.

Third-party EPLI fills this gap between EPLI and CGL and offers protection against allegations of wrongful acts made by customers, clients, vendors, and suppliers.

In general, covered claims include the following:

Discrimination based on the following:

• Race
• Religion
• Sex
• Age
• National origin
• Disability
• Pregnancy
• Sexual orientation

The following forms of harassment:

• Unwanted Sexual Advances
• Unwanted sexual advances
• Unwanted requests for sexual favors
• Other verbal or physical actions that create a hostile or offensive work environment

Third-party EPLI is vital for businesses that deal with customers on a daily basis. However, even if your firm doesn’t have a lot of interaction with the general public, you may still benefit from third-party EPLI coverage if your operations involve clients, suppliers or vendors. To learn more about third-party EPLI coverage and how First Underwriters, Inc can help protect your business, contact us today at (425) 242-5357.