Employment Related Practices Liability

SECTION I–EMPLOYMENT-RELATED PRACTICES LIABILITY COVERAGE

A.1. Basic Agreement

In the basic contractual agreement between the named insured and insurer, the insurer accepts the obligation to pay damages when caused by wrongful acts that qualify for coverage under the ERPL policy. Defense expenses are included within the limit of insurance. Coverage ceases once the combination of defense expenses paid plus the payment of judgments or settlements equals the available limit of insurance.

2. Wrongful Acts (Claims Eligibility)

To be covered, all of the following must apply:

a. The injury must occur because of an offense that has taken place in the coverage territory
b. The offense cannot have occurred before the Retroactive Date that is shown in the Declarations.
c. All claims for injury must be first made against an insured during the policy period or during the Extended Reporting Period (explained in Section VI) if purchased.

3. Recognition of a claim

A claim is considered to have been made when the notice of the claim is received by either an insured and reported to the insurer in writing or when a claim is made directly to the insurer in writing, whichever happens first.

4. Reporting of a wrongful act

Early notification of possible claims is very important. Therefore, named insureds are required to file written reports of wrongful acts that could be reasonably expected to create a claim.

5. Aggregation of related claims

All claims that result from acts to the same person will be considered to be made when the first of the claims is made, no matter how many claims are made or how many different persons make claims.

B. Exclusions

A number of acts and situations are not covered by this insurance policy. However, the insurer will provide defense (in most cases) until such time as it has been determined through appropriate legal processes, that the act is excluded.

1. Criminal, Fraudulent or Malicious Acts

Liability an insured has for his or her criminal, fraudulent, or malicious acts or omissions is not covered.

2. Contractual Liability

Liability or injury the insured has assumed in an agreement or contract is not covered unless the insured would have had that liability even without the contract or agreement.

3. Workers Compensation and Similar Laws

There is no coverage for any liability or obligation described under workers compensation, unemployment, and other similar laws.

4. Violations of Laws Applicable to Employers

The policy expects the named insured to act as a responsible corporate citizen and therefore excludes violation of the named insured’s duties and responsibilities as required by statutes, rules and regulations issued by the federal, state or local authorities.

5. Strikes and Lockouts

There is no coverage for injuries that occur to employees during strikes, lockouts, or labor disputes.

6. Prior or Pending Litigation

There is no coverage for suits or claims that were either pending or that existed before the date appearing in the policy’s Pending or Prior Litigation Date.

7. Prior Notice

If a claim had been reported or a notice had been given under a prior insurance policy, there is no coverage under this insurance policy for any wrongful act that is related to that reported claim or notice.