IIAA Offers New EPLI Coverage On and Offline

June 27, 2001

Rockwood Programs Inc. and KEMPES, a Kemper Company, have teamed up with the Independent Insurance Agents of America (IIAA) and its Big “I” Markets program to offer employment practices liability insurance (EPLI).

This new coverage replaces the stand-alone policy previously available through Employers Reinsurance Corporation, which has exited the stand-alone EPLI market with the exception of agencies that purchase the Westport errors and omission policy for insurance agents.

The product–which is the latest addition to the Big “I” Markets portfolio of specialty, niche, new/unusual and program coverages–will provide defense and indemnity protection against claims arising from employer/employee relationships. It is available to agents offline through IIAA state associations. Available in 48 states as a claims-made reporting, stand-alone coverage, the EPLI policy is written on admitted basis and is administered by Rockwood Programs Inc. and underwritten by KEMPES. Coverage is offered on a surplus lines basis in California and Texas.

“Given today’s litigious environment, the protection afforded by EPLI coverage has become more valuable than ever,” said Glenn W. Clark, CPCU, president of Rockwood Programs Inc. “Yet studies indicate that less than 2 percent of eligible firms in the United States actually obtain a policy. Our goal is to help independent agents provide a competitive product and, equally important to us, to provide an array of services and tools to help them sell EPLI.”

Policy liability limits can be written for as low as $100,000 up to $5 million. This is accomplished by tailoring coverages under the provision of the policy that covers employment-related events, including: refusal to employ; failure to promote; wrongful demotion, negligent evaluation or wrongful discipline; wrongful termination, including retaliatory or constructive discharge; and harassment, discrimination or humiliation.

This EPLI product is available to IIAA members nationwide through traditional distribution methods and also is available for online submission and processing through Big “I” Markets in New Jersey, Iowa, New Hampshire, New Mexico, Oklahoma and Virginia. Members should contact their state association for product accessibility.

The Big “I” Markets rollout schedule is being finalized as system resources are tested and expanded. For more information about this new EPLI product and Big “I” Markets, IIAA members should contact their state association or National Program Director Ryann C. Harris at rharris@iiaa.net or (703) 706-5417. Interested insurance providers also should contact Harris.

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