Every charter school should purchase an employment practices liability insurance policy for various reasons.   An EPLI policy protects a charter school against lawsuits arising from your school’s employees, like discrimination, unlawful termination, and failure to promote, among other things.

When purchasing an EPLI policy, we recommend every charter school look for the following items:

1. Defense Costs Outside Liability Limits. An EPLI policy with defense costs outside the insurance limits means that attorney’s fees will not erode the limit of insurance you have available to pay out on any claims.

2. 3rd Party Coverage. Ensure your policy provides coverage for acts to 3rd parties.

3. Selection of Counsel. A good EPLI policy will allow your charter school to choose the attorney you would like to defend your claim.

4. A Sub-Limit for Wage and Hour Claims.   Most EPLI policies will exclude claims related to wage and hour allegations, and a good policy will at least provide your school with a sub-limit of insurance for those claims.

5. Loss Control and Risk Management Services at No Additional Cost. A good EPLI policy will cover your charter school in the event of a claim, but it will help your school avoid claims altogether.

By focusing on the five coverage items above, you can ensure your charter school’s EPLI policy will provide you with the protection you need against employee-related lawsuits.