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Employer's Failure to Give Notice of Claim Bars Insurance Coverage

By Kevin McCormick
February 25, 2010

An increasing number of employers have begun purchasing insurance, sometimes referred to as “employment practices liability insurance” (EPLI), or as a rider to a directors and officers liability policy, to cover any employment claims that arise in the workplace.

However, as with any insurance agreement, it is essential that you scrupulously follow any of the provisions contained in the insurance agreement to preserve its coverage. One such requirement, contained in virtually all EPLI policies, is that the employer promptly notify the carrier in the event that any employment claims, potentially covered under the policy, are made.

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