Claims arising from wrongful employment practices have increased in frequency and can be extremely costly. ENCON offers an optional Employment Practices Wrongful Act Liability coverage extension to protect professional liability policyholders against this exposure. This extension of coverage takes the form of an endorsement to the applicant’s professional liability policy.

This coverage is intended for small to mid-size firms that neither purchase Employment Practices Liability insurance as an extension of their Directors and Officers Liability policy, nor buy separate stand-alone employment practices liability insurance. The endorsement is available to firms with 50 or fewer employees in total, of which a maximum of 10 per cent are employed in the U.S.

• Policy Form – Coverage is provided by endorsement to the professional liability practice policy
• Policy Period – Identical to the policy to which the endorsement is attached
• Capacity – A sublimit of $250,000 per claim and in the aggregate applies to this coverage; this sublimit is inclusive of supplementary payments, including defence costs
• Annual Premium – $250 for the Small Firm program; ranging from $250 to $1,100 (for a maximum of 50 employees) for other firms (Surcharges will apply for U.S. employees and/or past employment-related claims or potential claims)
• Territory – Identical to the policy to which the endorsement is attached

• The terms and conditions of coverage are detailed in the Employment Practices Wrongful Act Liability Endorsement
• “Employee” defined: The endorsement contains a definition of the term “employee”
• “Exclusions” defined: The endorsement also details the exclusions that apply to this coverage

• A completed Employment Practices Wrongful Act Liability Claims Verification Form
• All applications must be submitted to ENCON through a licensed insurance broker

Professional Liability & Construction