epli frequently asked questions

Prot

ectio

n What are Mountain West Agency Services and SCF Advantage?

Mountain West Agency Services is a subsidiary of SCF Premier Insurance Company. It is also a licensed insurance agency that can now offer Employment Practices Liability Insurance (EPLI) as a companion to SCF’s Workers’ Compensation coverage. We have created a high quality, affordable offering that comes with state-of-the-art risk management services and a 24-hour Employers Advantage Website. This product is underwritten by Beazley Insurance Company, Inc.

If I never discriminate against my employees, why would I need insurance?

Often, disputes are frivolous (estimates are as high as 60%) and are eventually proved to be false. However, employers must pay to defend themselves. It is important to note, EPLI coverage is a ‘duty to defend’ coverage so we are here to help you navigate these claims. Employees may not fully understand the law and may assume their definition of unfair treatment is unlawful treatment. Defending these claims can be complicated and costly.

How much does it cost?Employers Advantage Protection is offered at rates as low as $44.50 per employee depending on the coverage and class of business. Rates include the 24-hour Employers Advantage Website and online compliance tools. Contact Mountain West Agency Services for a quote.

What is the minimum premium?There is no minimum premium. The rates start at $44.50 per employee for $100,000 limits with a $10,000 self insured retention. If more coverage is needed, limits can be increased incrementally up to $1,000,000. In addition, retention can be lowered

incrementally to $2,500. Retention is the amount the employer pays before coverage takes effect.

What employees are covered?Full-time salaried employees are considered Full Time Equivalents (FTE) for purposes of calculating premium. A part-time employee would be 50% of the FTE rate, meaning each part time employee counts as ½ a full time employee. Simply add the total number FTE’s and part time employees and round to the nearest number.

What are the limits and retentions offered?

The standard Employers Advantage Protection policy provides limits of $100,000 with a $5,000 self insured retention. Retentions can range from $2,500 to $25,000. Limits can range from $100,000 - $1,000,000 depending on coverage desired.

What’s included in the coverage?The employer’s defense costs, damages, judgments, settlements and the plaintiff’s statutory attorney fees arising out of employment-related discrimination, harassment and inappropriate employment conduct as defined in the policy up to policy limits.

How do I request coverage?Upon renewal of your workers’ compensation coverage provided by SCF Arizona, you will receive an Employers Advantage Protection offer from Mountain West Agency Services. You can also go online and get a quote at any time. Please contact Mountain West Agency Services at 1.800.306.1064 or visit www.mwaservices.com.

SCF Arizona and its subsidiary companies are committed to serving Arizona employers. Employers Advantage Protection is offered exclusively through Mountain West Agency Services, a subsidiary of SCF Premier Insurance Company. This product is underwritten by Beazley Insurance Company, Inc.

SCF Advantage

Employers Advantage Protection

Employment Practices Liability InsuranceEmpl

oyer

P

rote

ctio

n

is jus

t a cl

ick aw

ayw

ww

.mw

aser

vice

s.co

m/

MW 200

EPLI Frequently Asked Questions

Type

of

Lim

its o

f A

mou

nt o

f

Num

ber o

f A

nnua

l O

pera

tion

Liab

ility

Re

tent

ion

Rate

Em

ploy

ees

Prem

ium

Dry G

oods

Ret

ail

$100

,000

$5

,000

$4

7.00

5 $2

35.0

0

Met

al Go

ods M

fg

$100

,000

$5

,000

$4

7.00

5 $2

35.0

0

Resta

uran

t $1

00,0

00

$5,0

00

$47.0

0 5

$235

.00

Offic

e - C

lerica

l $1

00,0

00

$5,0

00

$70.

50

5 $3

52.5

0

Pain

ting

Cont

ract

or

$100

,000

$5

,000

$7

0.50

5

$352

.50

Stan

dard

Pol

icy

Sam

ple

Quot

es

Have you experienced:� Layoffs?� Cutbacks?

� Reduced revenues?� Increased risks?

� Reduction in HR personnel?

In today’s world, employers must comply with complex federal, state and local laws and regulations when making employment decisions. Not only are the numbers of employment-related claims increasing, but so is the potential financial risk to your business. Defending a wrongful termination or discrimination claim – even when the claim is groundless or fraudulent – can be very expensive. The potential exposure for a money damages award can threaten your company’s very existence.

Think about this…� 3 out of 5 employers will be sued for an employment practices event� Average verdict in EPLI cases is now $55k - $75k for employers with

5-10 employees� Average cost to hire an employment law attorney in Arizona is

$350/hour� 550 EPLI suits are filed every day with the EEOC. 32% against

employers with less than 50 employees� 75% of litigation against employers involves employment disputes

Employers Advantage Protection helps you navigate these situations.

Employers Advantage Protection and Employers Advantage Protection Plus are new insurance products specifi cally designed to protect employers from employment practices liability. This protection compliments your SCF workers’ compensation coverage by providing you with significant protection against lawsuits arising from workplace situations, including discrimination, sexual harassment, wrongful termination and other personnel-related exposures.

It also comes with state-of-the-art risk management services and a 24-hour Employers Advantage Website providing guidance and tools for employers facing important employment decisions.

This product is offered exclusively to policyholders of SCF Arizona and its subsidiaries through Mountain West Agency Services and is underwritten by Beazley Insurance Company, Inc.

It is offered as a companion to SCF’s workers’ compensation insurance at a special discounted rate. Employers can obtain the standard Employers Advantage Protection or the enhanced Employers Advantage Protection Plus with limit options of $100,000/$250,000/$500,000/$1,000,000. The enhanced product offers third-party coverage and punitive damages.

The policies cover a wide spectrum of employment-related claims, including: � Failure to hire/promote/fire/demote � Wrongful infliction of emotional distress � False imprisonment/detention, malicious prosecution � Libel, slander, defamation of character, invasion of privacy

Product Advantages� Employers Advantage Protection and Protection Plus both include legal

representation against claims� Dedicated claims handling � Personal contact within 24-48 hours of a claim notification� Straightforward underwriting rules� Competitive pricing� No minimum premium� The average costs are 35% less when we control defense of the claim� Risk Management website for employers � Self Insured Retention may be reduced by 50% for termination/demotion claims

with prior consultation of the Employers Advantage Website or approved employment law attorney. Retention is the amount the employer pays before coverage takes effect.

Support Tools� Online training on preventing sexual harassment to protect your company � Online training for employee terminations and preventing employee discrimination� State specific information on wage and hour laws� Customizable employment policies and procedures available in English and Spanish: Downloadable sample Employee Handbooks HR Policies Procedure Manuals FAQs

Usage of these services is not required but recommended.

Policy Coverage Exclusions� Does not cover awards against an employer found to have inflicted intentional harm.� Prior knowledge. Does not cover disputes that are already known to the employer.� Punitive damages. (Punitive damages coverage is available through Employers

Advantage Protection Plus)� Third-party conduct. (Third-party conduct is available through the Employers

Advantage Protection Plus)

Third-party claims coverage protects you in terms of insured third-parties. Examples of insured third-parties are customers and vendors. Excluded classes not eligible for the enhanced coverage option are:

� Education Industry� Golf/County Clubs� Municipalities� Not for Profit Companies� Publishing Companies

� Religious Entities� Casinos� Social Service Agencies� Transportation Companies

Occupation Class Exclusions on both Employers Advantage Protection and Protection Plus:

� Employee Benefit Funds � Entertainment Industry � Household Staff

� Financial Industry � Staffing Companies � Stockbrokers

Employers Advantage ProtectionEmployment Practices Liability Insurance

Prot

ectio

n What are Mountain West Agency Services and SCF Advantage?

Mountain West Agency Services is a subsidiary of SCF Premier Insurance Company. It is also a licensed insurance agency that can now offer Employment Practices Liability Insurance (EPLI) as a companion to SCF’s Workers’ Compensation coverage. We have created a high quality, affordable offering that comes with state-of-the-art risk management services and a 24-hour Employers Advantage Website. This product is underwritten by Beazley Insurance Company, Inc.

If I never discriminate against my employees, why would I need insurance?

Often, disputes are frivolous (estimates are as high as 60%) and are eventually proved to be false. However, employers must pay to defend themselves. It is important to note, EPLI coverage is a ‘duty to defend’ coverage so we are here to help you navigate these claims. Employees may not fully understand the law and may assume their definition of unfair treatment is unlawful treatment. Defending these claims can be complicated and costly.

How much does it cost?Employers Advantage Protection is offered at rates as low as $44.50 per employee depending on the coverage and class of business. Rates include the 24-hour Employers Advantage Website and online compliance tools. Contact Mountain West Agency Services for a quote.

What is the minimum premium?There is no minimum premium. The rates start at $44.50 per employee for $100,000 limits with a $10,000 self insured retention. If more coverage is needed, limits can be increased incrementally up to $1,000,000. In addition, retention can be lowered

incrementally to $2,500. Retention is the amount the employer pays before coverage takes effect.

What employees are covered?Full-time salaried employees are considered Full Time Equivalents (FTE) for purposes of calculating premium. A part-time employee would be 50% of the FTE rate, meaning each part time employee counts as ½ a full time employee. Simply add the total number FTE’s and part time employees and round to the nearest number.

What are the limits and retentions offered?

The standard Employers Advantage Protection policy provides limits of $100,000 with a $5,000 self insured retention. Retentions can range from $2,500 to $25,000. Limits can range from $100,000 - $1,000,000 depending on coverage desired.

What’s included in the coverage?The employer’s defense costs, damages, judgments, settlements and the plaintiff’s statutory attorney fees arising out of employment-related discrimination, harassment and inappropriate employment conduct as defined in the policy up to policy limits.

How do I request coverage?Upon renewal of your workers’ compensation coverage provided by SCF Arizona, you will receive an Employers Advantage Protection offer from Mountain West Agency Services. You can also go online and get a quote at any time. Please contact Mountain West Agency Services at 1.800.306.1064 or visit www.mwaservices.com.

SCF Arizona and its subsidiary companies are committed to serving Arizona employers. Employers Advantage Protection is offered exclusively through Mountain West Agency Services, a subsidiary of SCF Premier Insurance Company. This product is underwritten by Beazley Insurance Company, Inc.

SCF Advantage


Employment Practices Liability InsuranceEmpl

oyer

P

rote

ctio

n

is jus

t a cl

ick aw

ayw

ww

.mw

aser

vice

s.co

m/

MW 200

EPLI Frequently Asked Questions

ProtectionW

hat a

re Mo

un

tain

We

st Ag

en

cy

Se

rvice

s an

d S

CF A

dva

nta

ge?

Mou

ntain

West A

gency Services is a

subsid

iary of SCF P

remier In

suran

ce C

ompan

y. It is also a licensed in

suran

ce agen

cy that can

now

offer E

mp

loymen

t P

ractices Liab

ility Insu

rance (E

PL

I) as a com

panion

to SCF

’s Workers’

Com

pen

sation coverage. W

e have created

a high

quality, aff

ordable offerin

g th

at comes w

ith state-of-th

e-art risk m

anagem

ent services an

d a 24-hou

r E

mp

loyers Ad

vantage W

ebsite. Th

is produ

ct is un

derwritten

by Beazley

Insu

rance C

ompan

y, Inc.

If I nev

er d

iscrimin

ate

ag

ain

st m

y e

mp

loye

es, w

hy w

ou

ld I

ne

ed

insu

ran

ce?O

ften

, dispu

tes are frivolous (estim

ates are as h

igh as 60%

) and are even

tually proved

to be false. How

ever, employers m

ust pay to

defend th

emselves. It is im

portant to n

ote, E

PL

I coverage is a ‘duty to defen

d’ coverage so w

e are here to h

elp you n

avigate th

ese claims. E

mployees m

ay not fu

lly u

nderstan

d the law

and m

ay assum

e their

defin

ition of u

nfair treatm

ent is u

nlaw

ful

treatmen

t. Defen

din

g these claim

s can be

complicated an

d costly.

Ho

w m

uch

do

es it co

st?E

mp

loyers Ad

vantage P

rotectio

n

is offered at rates as low

as $44.50 per em

ployee depend

ing on

the coverage an

d class of bu

siness. R

ates inclu

de the 24-

hou

r Em

plo

yers Ad

vantage W

ebsite an

d on

line com

pliance tools. C

ontact M

oun

tain

West A

gency Services for a qu

ote.

Wh

at is th

e min

imu

m p

rem

ium

?Th

ere is no m

inim

um

premiu

m. Th

e rates start at $44.50 per em

ployee for $100,000 lim

its with

a $10,000 self insu

red retention

. If m

ore coverage is needed, lim

its can be

increased in

cremen

tally up to $1,000,000.

In add

ition, reten

tion can

be lowered

increm

entally to $2,500. R

etention

is the

amou

nt th

e employer pays before coverage

takes effect.

Wh

at e

mp

loye

es a

re cove

red

?Fu

ll-time salaried em

ployees are con

sidered Full Tim

e Equ

ivalents (FTE)

for purp

oses of calculatin

g premiu

m.

A part-tim

e employee w

ould be 50%

of th

e FTE rate, mean

ing each

part tim

e employee cou

nts as ½

a full tim

e em

ployee. Simply add th

e total nu

mber

FTE’s an

d part time em

ployees and rou

nd

to the n

earest nu

mber.

Wh

at a

re the lim

its an

d

rete

ntio

ns o

ffere

d?

The stan

dard Em

ployers A

dvan

tage P

rotectio

n policy provides lim

its of $100,000 w

ith a $5,000 self in

sured

retention

. Reten

tions can

range from

$2,500 to $25,000. Lim

its can ran

ge from

$100,000 - $1,000,000 depend

ing on

coverage desired.

Wh

at’s in

clud

ed

in th

e cove

rag

e?Th

e employer’s defen

se costs, damages,

judgm

ents, settlem

ents an

d the plain

tiff’s

statutory attorn

ey fees arising ou

t of em

ploymen

t-related discrim

ination

, h

arassmen

t and in

appropriate em

ploymen

t condu

ct as defin

ed in th

e policy u

p to policy limits.

Ho

w d

o I re

qu

est co

vera

ge?

Upon

renew

al of your w

orkers’ com

pensation

coverage provided by SCF

Arizon

a, you w

ill receive an E

mp

loyers A

dvan

tage Pro

tection

offer from

M

oun

tain W

est Agen

cy Services. You can

also go on

line an

d get a quote at an

y time.

Please contact M

oun

tain W

est Agen

cy Services at 1.800.306.1064 or visit w

ww

.mw

aservices.com.

SCF Arizona and its subsidiary companies are com

mitted to serving Arizona

employers. Em

ployers Advantage Protection is offered exclusively through M

ountain West Agency Services, a subsidiary of SCF Prem

ier Insurance Com

pany. This product is underwritten by Beazley Insurance Com

pany, Inc.

SCF Advantage

Employers

Advantage Protection

Employm

ent Practices Liability Insurance

Employer Protection is just a click away

www.mwaservices.com/

MW

200

EPLI Fre

qu

en

tly Aske

d Q

uestio

ns

Type of Limits of Amount of Number of Annual Operation Liability Retention Rate Employees Premium

Dry Goods Retail $100,000 $5,000 $47.00 5 $235.00

Metal Goods Mfg $100,000 $5,000 $47.00 5 $235.00

Restaurant $100,000 $5,000 $47.00 5 $235.00

Office - Clerical $100,000 $5,000 $70.50 5 $352.50

Painting Contractor $100,000 $5,000 $70.50 5 $352.50

Standard Policy Sample Quotes

Have yo

u ex

perie

nce

d:

� Layoffs?

� Cutbacks?

� Reduced revenues?

� Increased risks?� R

eduction in

HR

personnel?

In tod

ay’s w

orld, em

ployers mu

st comply w

ith com

plex federal, state an

d local laws an

d regulation

s wh

en m

akin

g employ

men

t decisions.

Not on

ly are the n

um

bers of em

ploym

ent-related claim

s increasin

g, bu

t so is the p

otential fi

nan

cial risk to your bu

siness. D

efend

ing a

wron

gful term

ination

or discrim

ination

claim – even

wh

en th

e claim

is groun

dless or frau

dulen

t – can b

e very exp

ensive. Th

e poten

tial ex

posu

re for a mon

ey dam

ages award can

threaten

your com

pan

y’s

very existen

ce.

Thin

k ab

ou

t this…

� 3 out of 5 em

ployers will be su

ed for an em

ploymen

t practices event

� Average verd

ict in E

PL

I cases is now

$55k - $75k for employers w

ith

5-10 employees

� Average cost to h

ire an em

ploy

men

t law attorn

ey in A

rizona is

$350/hou

r� 550 E

PL

I suits are fi

led every day with

the E

EOC

. 32% again

st em

ployers with

less than

50 employees

� 75% of litigation

against em

ployers involves em

ploymen

t dispu

tes

Emp

loyers A

dvan

tage Pro

tection

help

s you

navig

ate these situ

ation

s.

Em

ployers A

dvan

tage Pro

tection

and E

mp

loyers Ad

vantage

Pro

tection

Plu

s are new

insu

rance produ

cts specifi cally designed to

protect employers from

employm

ent practices liability. Th

is protection

complim

ents you

r SCF w

orkers’ compen

sation coverage by provid

ing

you w

ith sign

ificant protection

against law

suits arisin

g from w

orkplace situ

ations, in

clud

ing d

iscrimin

ation, sexu

al harassm

ent, w

rongfu

l term

ination

and oth

er personn

el-related exposures.

It also comes w

ith state-of-th

e-art risk man

agemen

t services and a

24-hou

r Em

ployers A

dvan

tage Web

site providin

g guidan

ce and tools

for employers facin

g importan

t employm

ent decision

s.

This produ

ct is offered exclu

sively to policyholders of SC

F Arizon

a and its

subsid

iaries throu

gh M

oun

tain W

est Agen

cy Services and is u

nderw

ritten

by Beazley In

suran

ce Com

pany, In

c.

It is offered as a com

panion to SC

F’s workers’ com

pensation in

surance at

a special discounted rate. Em

ployers can obtain the standard Em

ployers

Ad

vantage P

rotection or the en

hanced E

mp

loyers Ad

vantage P

rotection

Plu

s with lim

it options of $100,000/$250,000/$500,000/$1,000,000. The

enh

anced product offers th

ird-party coverage and pun

itive damages.

The policies cover a wide spectru

m of em

ployment-related claim

s, including:

� Failure to h

ire/promote/fi

re/demote

� Wron

gful in

fliction

of emotion

al distress

� False imprison

men

t/detention

, maliciou

s prosecution

� Libel, slan

der, defamation

of character, in

vasion of privacy

Prod

uct A

dva

ntag

es

� Em

ployers A

dvan

tage Pro

tection

and P

rotectio

n P

lus both

inclu

de legal represen

tation again

st claims

� Ded

icated claims h

and

ling

� Personal con

tact with

in 24-48 h

ours of a claim

notification

� Straightforw

ard un

derwritin

g rules

� Com

petitive pricing

� No m

inim

um

premiu

m� Th

e average costs are 35% less w

hen

we con

trol defense of th

e claim� R

isk Man

agemen

t website for em

ployers � Self In

sured R

etention

may be redu

ced by 50% for term

ination

/demotion

claims

with

prior consu

ltation of th

e Em

ployers A

dvan

tage Web

site or approved em

ploymen

t law attorn

ey. Reten

tion is th

e amou

nt th

e employer pays before

coverage takes effect.

Sup

po

rt Too

ls� O

nlin

e trainin

g on preven

ting sexu

al harassm

ent to protect you

r compan

y � O

nlin

e trainin

g for employee term

ination

s and preven

ting em

ployee discrim

ination

� State specific inform

ation on

wage an

d hou

r laws

� Cu

stomizable em

ployment policies and procedu

res available in English and Span

ish:

Dow

nloadable sam

ple Em

ployee Han

dbooks

HR

Policies

Procedu

re Man

uals

FAQ

s U

sage of these services is n

ot required bu

t recomm

ended.

Policy C

ove

rage E

xclusio

ns

� Does n

ot cover awards again

st an em

ployer foun

d to have in

flicted in

tention

al harm

.� P

rior know

ledge. Does n

ot cover dispu

tes that are already kn

own

to the em

ployer.� P

un

itive damages. (P

un

itive damages coverage is available th

rough

Em

ployers

Ad

vantage P

rotectio

n P

lus)

� Third-party con

duct. (Th

ird-party condu

ct is available throu

gh th

e Em

ployers

Ad

vantage P

rotectio

n P

lus)

Third-party claim

s coverage protects you in

terms of in

sured th

ird-parties. Exam

ples of in

sured th

ird-parties are custom

ers and ven

dors. Exclu

ded classes not eligible for th

e en

han

ced coverage option are:

� Education

Indu

stry� G

olf/Cou

nty C

lubs

� Mu

nicipalities

� Not for P

rofit C

ompan

ies� P

ublish

ing C

ompan

ies

� Religiou

s En

tities� C

asinos

� Social Service Agen

cies� Tran

sportation C

ompan

ies

Occupation C

lass Exclusion

s on both Em

ployers A

dvan

tage Protection

and Protection

Plu

s:

� Em

ployee Ben

efit Fu

nds

� En

tertainm

ent In

dustry

� Hou

sehold Staff

� Finan

cial Indu

stry � Staffi

ng C

ompan

ies � Stockbrokers


Employm

ent Practices Liability Insurance

epli frequently asked questions

Documents