Russell Bond & Co., Inc. January 2017  
Third Party Employment Practices Liability
Employment Practices Liability (EPL) insurance covers allegations from employees against other employees or the employer based on discrimination, harassment, wrongful termination, retaliation and other specified "Wrongful Acts".  This is what is commonly know as "first party" EPL coverage, the first party being the employee as the claimant.

So what is a "third party" EPL Claim?  Allegations of specific discrimination or harassment against the employees or the employer from third parties whom the employees come in contact with during the course of conducting business on behalf of the organization.  Third parties include customers / clients, vendor and independent contractors on the organization's premises such as cleaning staff.

Third parties include (but not limited to):

  • Customers / clients

  • Vendors

  • Independent contractors such as cleaning people

Examples of Businesses with Third Party EPL Exposures:

  • Artisan contractors (plumbers, landscapers)

  • Business services (accountants, consultants)

  • Commercial daycare centers and summer camps

  • Fast food restaurants

  • Fitness centers

  • Hotels and motels

  • Retail stores including convenience stores and supermarkets

  • Any organization with customers / clients has a third party EPL exposure!

Third Party EPL
Image courtesy of patrisyu at

Claim examples:

  - A blind customer entered a local grocery store with his guide dog.  The manager of the deli department asked the customer to take his dog outside because he thought the dog presented a health hazard.  The customer sued for violation of the American with Disabilities Act.

 - A fitness center member filed a sexual harassment complaint, claiming her trainer was touching her inappropriately during her workouts with him.  She complained to other trainers at various times and later to the supervisor who indicated there had not been any previous issues or complaints, and therefore did nothing.  The client switched trainers but still felt uncomfortable with comments and remarks that he started to make towards her.  This case was settled for $55,000 with $9,872 in defense costs.

Joanna Brancaleoni Ed Chadwick Tonya Hollederer Jackie Oddo
Joanna Brancaleoni, ext. 121
Ed Chadwick, ext. 261
Tonya Hollederer, ext. 133
Vice President / Senior Broker
Jackie Oddo, ext. 161
Call us at  800-333-7226
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