The Lowdown on EPL Insurance for Senior Living Communities

August 10, 2021

What’s EPLI – or employment practices liability insurance? An EPLI policy offers insurance protection against employment practices claims and lawsuits that are brought against a facility, its officers or directors and/or employees and managers. Legislation such as the Family Medical Leave Act and the Americans With Disabilities Act, plus a growing number of job-related lawsuits and claims, have created the need for senior living facility owners and operators to consider this coverage. It protects you from possible charges brought on by employees, residents and the families of residents. These policies generally cover charges in the following areas:

  • Sexual harassment
  • Gender, age and other types of discrimination
  • Wrongful termination
  • Breach of employment contract
  • Negligent evaluation, compensation, promotion or hiring decisions
  • Failure to employ or promote
  • Wrongful discipline
  • Deprivation of career opportunity
  • Wrongful infliction of emotional distress
  • Mismanagement of employee benefit plans

EPLI polices are rated on the number of employees and financial background of the company/facility.  Policies are typically written on a claims-made basis which means all claims must be reported during the policy term unless an extended reporting period is purchased.

In an effort to avoid claims and minimize risk, we suggest you add some of the below best practice tips to your risk management program:

  • Review your employee handbook on an annual basis
  • Conduct background checks
  • Respond timely and effectively  to EEOC claims
  • Utilize termination witnesses
  • Review leave policies
  • Document discipline
  • Establish social media practices and guidelines

To learn more about this essential policy, reach out to your MMA representative.


Amy Carta is an Account Executive in the Senior Living and Healthcare divisions of Assurance, a Marsh McLennan Agency company. With 20 years of experience in the insurance industry, Amy focuses mostly on customer service, concentrating on working hands-on with clients for any insurance need. Amy develops marketing plans to get her clients the very best prices possible along with building in risk management divisions to help keep prices down. Amy graduated from South Suburban College in South Holland, Illinois with an AAS Degree in Visual Communications and Computer Graphics and holds P&C Producer's License since 2002.