Nursing Home Employment Practices Liability Insurance (EPLI) and board member coverage.
Why you need it:
Nursing homes are responsible for employing a large number of people, including nurses, assistants, and other staff members. This makes them vulnerable to claims of employment practices violations such as discrimination, harassment, wrongful termination, and retaliation. Board members of nursing homes can also be held liable for their decisions and actions that may result in harm to employees or the organization.
EPLI and board member coverage can protect nursing homes and their board members from financial losses resulting from employment practices claims and lawsuits.
What it covers:
EPLI covers claims and lawsuits related to employment practices violations, including:
- Failure to pay overtime during COVID
- Discrimination based on age, gender, race, religion, or disability
- Sexual harassment or other forms of harassment
- Wrongful termination or demotion, and labor disputes
- Retaliation against an employee who filed a complaint or participated in an investigation
- Emotional & Physical distress claims
Board member coverage protects board members from lawsuits arising from their decisions and actions, including:
- Breach of fiduciary duty
- Negligence or errors in judgment
- Failure to follow legal or regulatory requirements
- Mismanagement or misuse of company funds
- Whistleblower Retaliation
Cases where it paid out:
Here are some examples of cases where EPLI and board member coverage paid out in nursing home settings:
- A nursing home in Ohio paid $180,000 to settle a lawsuit alleging that it failed to prevent a supervisor from sexually harassing employees. The nursing home had EPLI coverage. (source: https://www.insurancejournal.com/news/midwest/2013/02/27/282536.htm)
- A nursing home in New York paid $800,000 to settle a lawsuit alleging that it discriminated against African American employees. The nursing home had EPLI coverage. (source: https://www.insurancejournal.com/news/east/2014/02/11/320047.htm)
- A nursing home in Illinois paid $1.75 million to settle a lawsuit alleging that it failed to protect a resident from sexual assault by an employee. The board members of the nursing home had board member coverage. (source: https://www.insurancejournal.com/news/midwest/2018/02/22/481122.htm)
Top 10 carriers: (Call 972-800-6670 For Quotes & Questions)
Here are the top 10 carriers for EPLI according to Business Insurance’s 2020 rankings:
- Chubb
- Hiscox
- Travelers
- Nationwide
- AIG
- Zurich
- CNA
- The Hartford
- AXA XL
- Liberty Mutual
Tips on how to pick the right one:
When selecting an EPLI and board member coverage provider for your nursing home, consider the following:
- Coverage limits: Make sure the policy covers the maximum amount you could be liable for in a lawsuit.
- Exclusions: Review the policy for any exclusions that could leave you vulnerable to claims.
- Claims handling: Look for a provider with a reputation for efficient and effective claims handling.
- Experience: Choose a provider with experience in the nursing home industry and a history of paying out claims.
- Cost & Quotes: Compare quotes from multiple providers to ensure you are getting a fair price for the coverage you need.