Frequently Asked Questions on Restaurant Franchise Insurance

Below you will find frequently asked questions about EPLI Franchise insurance.  Simply click on any of the questions below and the answer will appear underneath. For more detailed information or for a quote on any franchise insurance products, contact American Franchise Specialist Agency.

WHAT DOES EMPLOYMENT PRACTICES LIABILITY INSURANCE COVER?

EPLI PROVIDES COVERAGE FOR CLAIMS OF:

  • DISCRIMINATION
  • HARASSMENT
  • INAPPROPRIATE EMPLOYMENT CONDUCT
  • RETALIATION
  • THIRD PARTY COVERAGE

WHO IS INSURED UNDER THIS POLICY?

  • INDIVIDUAL- IF NAMED INSURED IS THE SOLE OWNER
  • PARTNERSHIPS
  • THE CORPORATION, ITS SUBSIDIARIES, IF LISTED ON APPLICATION
  • ALL EMPLOYEES

WHAT DAMAGES ARE COVERED?

  • BACK PAY AWARDS
  • FRONT PAY AWARDS
  • PREJUDGMENT INTERESTS
  • POST-JUDGMENT INTERESTS
  • SETTLEMENTS
  • COMPENSATORY DAMAGES
  • PUNITIVE DAMAGES ( WHERE ALLOWABLE BY LAW)

ARE DEFENSE COSTS COVERED?

Yes, LEGAL COUNSEL IS COVERED UNDER THE POLICY AND WILL BE PROVIDED BY THE INSURANCE COMPANY

WHAT IS DISCRIMINATION?

TERMINATION OF THE EMPLOYMENT RELATIONSHIP, A DEMOTION OR FAILURE OR REFUSAL TO HIRE OR PROMOTE OR DENIAL OF AN EMPLOYMENT BENEFIT OR THE TAKING OF ANY ADVERSE OR DIFFERENTIAL EMPLOYMENT ACTION BECAUSE OF RACE, COLOR, RELIGION, AGE, SEX, PREGNANCY, SEXUAL ORIENTATION OR PREFERENCE, NATIONAL ORIGIN, OR DISABILITY INCLUDING A DISABILITY RESULTING FROM HIV OR AIDS OR ANY OTHER BASIS PROHIBITED BY FEDERAL, STATE OR LOCAL LAW.

WHAT IS HARASSMENT?

UNWELCOME SEXUAL OR NON SEXUAL ADVANCES, REQUESTS FOR SEXUAL OR NON SEXUAL FAVORS, OR OTHER VERBAL, VISUAL OR PHYSICAL CONDUCT OF A SEXUAL OR NON SEXUAL NATURE THAT:

  • IS EXPLICITLY OR IMPLICITLY MADE A CONDITION OF EMPLOYMENT
  • IS USED AS A BASIS FOR EMPLOYMENT DECISIONS,
  • CREATES A WORK ENVIRONMENT THAT INTERFERES WITH PERFORMANCE

HARASSMENT INCLUDES ALLEGATIONS OF ASSAULT AND BATTERY, BUT ONLY IF THEY ARE RELATED TO A CHARGE OF SEXUAL HARASSMENT.

WHAT IS INAPPROPRIATE EMPLOYMENT CONDUCT?

THIS IS THE ACTUAL OR CONSTRUCTIVE TERMINATION OF THE EMPLOYMENT RELATIONSHIP IN A MANNER WHICH IS AGAINST THE LAW AND WRONGFUL OR IN BREACH OF AN IMPLIED AGREEMENT TO CONTINUE EMPLOYMENT, INCLUDING ALLEGATIONS OF BREACH OF AN IMPLIED EMPLOYMENT CONTRACT AND BREACH OF THE COVENANT OF GOOD FAITH AND FAIR DEALINGS IN THE EMPLOYMENT CONTRACT, OR AN EMPLOYMENT RELATED INCIDENT RESULTING IN ONE OR MORE OF THE FOLLOWING OFFENSES.

  • WRONGFUL DEMOTION OR WRONGFUL FAILURE TO EMPLOY OR PROMOTE
  • WRONGFUL DISCIPLINE
  • WRONGFUL DENIAL OF TENURE OR DEPRIVATION OF CAREER OPPORTUNITY
  • NEGLIGENT HIRING, SUPERVISION OR EVALUATION
  • RETALIATION
  • MISREPRESENTATION OR DEFAMATION
  • INFLICTION OF EMOTIONAL DISTRESS, HUMILIATION, MENTAL INJURY OR MENTAL ANGUISH
  • FALSE ARREST, DETENTION OR IMPRISONMENT; OR
  • LIBEL, SLANDER DEFAMATION OF CHARACTER OR ANY INVASION OF RIGHT OF PRIVACY.
  • EMPLOYMENT TERMINATIONS, DISCIPLINARY ACTIONS, DEMOTIONS OR OTHER EMPLOYMENT DECISIONS WHICH VIOLATE PUBLIC POLICY OR THE FAMILY MEDICAL LEAVE ACT OR SIMILAR STATE LAW
  • VIOLATIONS OF THE UNIFORMED SERVICES EMPLOYMENT AND REEMPLOYMENT RIGHTS ACT

"Inappropriate Employment Conduct" does not include severance payments or amounts determined to be owing under a written contract of employment for a definite period of time; however, "defense costs" for "claims" of breach of a written or express contract of employment for a written or express contract of employment for a definite period of time are covered.

WHAT IS RETALIATION?

RETALIATORY TREATMENT AGAINST AN EMPLOYEE ON ACCOUNT OF SUCH EMPLOYEES EXERCISE OR ATTEMPTED EXERCISE OF HIS OR HER RIGHTS UNDER THE LAW.

WHAT IS THIRD PARTY COVERAGE?

THIS COVERAGE EXTENDS YOUR POLICY TO INCLUDE CLAIMS FROM AN EXISTING OR FORMER CLIENT, CUSTOMER OR ANY OTHER PERSON (S) ALLEGING HARASSMENT OR DISCRIMINATION INCLUDING ADA.

WHICH FRANCHISEES CAN BE COVERED?

ALL FRANCHISEES ARE ELIGIBLE, BIG OR SMALL, SINGLE STORE OR MULTIPLE LOCATIONS.

WHICH STATES CAN BE COVERED?

THE POLICY IS AVAILABLE IN ALL STATES INCLUDING CALIFORNIA.

HOW MUCH DOES EPLI COVERAGE COST?

FOR A FEW DOLLARS PER DAY YOU CAN PURCHASE MINIMUM COVERAGE.

WHAT LIMITS ARE AVAILABLE?

  • $250,000 each claim $250,000 aggregate
  • $250,000 each claim $500,000 aggregate
  • $250,000 each claim $1,000,000 aggregate
  • $250,000 each claim $3,000,000 aggregate
  • $500,000 each claim $500,000 aggregate
  • $500,000 each claim $1,000,000 aggregate
  • $500,000 each claim $3,000,000 aggregate
  • $1,000,000 each claim $1,000,000 aggregate
  • $1,000,000 each claim $3,000,000 aggregate

WHAT DEDUCTIBLES ARE AVAILABLE?

  • $5,000 PER CLAIM
  • $10,000 PER CLAIM
  • $25,000 PER CLAIM

WHY IS THIS POLICY PREFERRED BY MOST FRANCHISEES?

  • Removal of Franchisor from Litigation: In the event that a Franchisor is named in a franchisees employment practices litigation, the policy provides up to $100,000 in defense cost coverage to remove the Franchisor from this litigation. The defense cost coverage feature assists franchisees in meeting their contractual obligations to the franchisors
  • No Intentional Acts Exclusion - The Policy does not have an Intentional Acts Exclusion.
  • Special Deductible Feature: The policy has a special deductible provision that reduces the policy deductible in half if you contact the panel counsel for advice prior to a termination or demotion or if your claim is resolved through mediation.
  • HR Care Web Site - Policyholders receive a password allowing them free access to Curtis Communications, Inc.'s HR Care web site, which includes the following: Legal Guide, Outlook Issues, Links and Resources, U.S. Legal System and Terminology and Self-Audits
  • Toll-free Hotline - This Hot-Line is designed to assist you in addressing legal requirements and issues through a preventive approach, which reduces the likelihood of EPLI claims, As a HCC Insured you are eligible to receive up to 30 minutes of free guidance each month on general workplace requirements and issues.