Legal benefits are one of those things you hope you never need. But, just in case, ADP TotalSource® has you covered with Employment Practices Liability Insurance (EPLI) coverage, the Legal Defense Benefit (LDB), and support in responding to charges from the Equal Employment Opportunity Commission (EEOC) and other similar administrative agencies.
It’s important to know there are changes to the EPLI and LDB offerings coming August 1, 2024, which amend your Pricing Addendum.
Please take a minute to review the following important information, including the changes described below.
Employment Practices Liability Insurance (EPLI)
The EPLI coverage provided as part of the Services offers up to an aggregate $1M dollars per year for covered employment claims brought by a worksite employee or an applicant during the term of the Client Services Agreement (CSA). The EPLI section of your Pricing Addendum is revised as follows effective August 1, 2024:
o Limits of Insurance:
- Each client company sublimit: $1,000,000 each insured event & annual aggregate
o Self-insured retention/deductible for settlements and judgments:
- $ 25,000 all states other than California
o Self-insured retention/deductible (defense costs):
- $ 75,000 all states other than California
As you can see, no changes have been made to the policy for claims made outside the state of California. For claims made in the state of California, the retentions/deductibles have each increased (from $100,000 to $200,000 for each retention/deductible).
As you may know, California has some of the most stringent employment regulations in the country and has historically been a hotbed of employment litigation. To alleviate the financial burden of this challenging landscape, ADP TotalSource will offset the increase to the Self-Insured Retentions/Deductibles through our LDB Programs, discussed below.
There have been no further changes to the terms of the EPLI policy. For more information, review an updated Employment Practices Liability Coverage Information Summary on this topic. For a copy of the policy, please contact ADPTotalSource@marsh.com. For any additional questions regarding EPLI coverage, please contact Elana Iltcheva with Marsh McLennan, ADP TotalSource’s insurance broker, at Elena.Iltcheva@mmc.com.
Legal Defense Benefit (LDB) Programs
ADP TotalSource protects your organization’s financial interests through our LDB. If a covered claim or lawsuit is filed against your organization, ADP TotalSource will extend the LDB provided all CSA conditions are met, which include but are not limited to contacting ADP TotalSource prior to taking an adverse employment action and following ADP TotalSource’s recommendation(s) regarding the incident from which the claim arose. Upon acceptance of the LDB by your organization, ADP TotalSource will select a skilled employment law attorney to investigate the claim and defend your company. Attorneys’ fees for LDB eligible claims will be paid by ADP TotalSource up to the following amounts, which updates the LDB section of your Pricing Addendum:
Legal Defense Benefit
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Location of the claim
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Amount of the LDB
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Outside the State of California
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Up to $75,000 toward defense fees
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Legal Defense Benefit +
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Location of the claim
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Amount of the LDB
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Within the State of California
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Up to $200,000 toward defense fees
Up to $150,000 toward settlement/judgment (after your organization pays the first $50,000)*
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*If a covered EPLI claim filed within the State of California results in a settlement or judgment in excess of $50,000, ADP TotalSource will fund the remainder of the applicable Self-Insured Retention/Deductible for Settlements and Judgments above $50,000 for such claim if (i) the requirements for the LDB set forth in your CSA are satisfied with respect to such claim such that you are eligible for the LDB at the time of the applicable settlement or judgment, (ii) you have paid the first $50,000 of the Self-Insured Retention/Deductible for Settlements and Judgments with respect to such claim, and (iii) the CSA is in effect and has not been terminated by either party. In no event will ADP TotalSource’s payment towards your Self-Insured Retention/Deductible for Settlements and Judgments exceed $150,000.
For more information, review an updated LDB Frequently Asked Questions on this topic.
Support with a Written Response to the Equal Employment Opportunity Commission (EEOC) Service
The EEOC is the federal government agency that enforces anti-discrimination laws. If an employee files a charge with the EEOC or state equivalent, the respective agency will send a notice requesting that you respond with a position statement. As part of the Services, ADP TotalSource will assist your organization in the preparation of the written position statement.
You can rest assured that ADP TotalSource is your trusted advisor in human resources management. As our client, our team of professionals will support your organization with strategic compliance guidance, as well as benefits such as EPLI coverage, LDB, and assistance with a written response the EEOC – all services dedicated to help you protect your organization’s financial interests in the event of a claim.
For more information, please contact your HR Business Partner. They will help guide you to optimize your company’s ability to utilize these benefits should the need arise.
Sincerely,
ADP TotalSource
The descriptions of the LDB and other related benefits provided by the CSA does not amend, alter, or replace the terms, conditions, exclusions and other provisions of the CSA, unless otherwise indicated, nor do they amend, alter, or replace any applicable laws or regulations.
The descriptions of the insurance coverage provided by this policy do not amend, alter, or replace the terms, conditions, exclusions and other provisions of the policy nor do they amend, alter, or replace any applicable laws, regulations, rating rules, or plan. The information contained in this document provides only a general overview of subjects covered, is not intended to be taken as advice regarding any individual situation, and should not be relied upon as such. Insureds should consult their insurance and legal advisors regarding specific coverage issues. All insurance coverage is subject to the terms, conditions, and exclusions of the applicable individual policies. Marsh cannot provide any assurance that insurance can be obtained for any particular client or for any particular risk.