Are you prepared in case you have to fire an actor and they claim discrimination?
In the world we live in today, sexual harassment cases have become commonplace, and the cost of settlements and legal fees are astounding. For most, the damages of such a case would be devastating. That is why producers and filmmakers need to carry Employment Practices Liability Insurance (EPLI).
What is Employment Practices Liability Insurance (EPLI)?
Employment Practices Liability Insurance (EPLI) covers film companies against claims or lawsuits filed by actors or crew members relating to their employment in your production. In other words, EPLI pays damages if an employee claims they suffered at your hands or those working in the production.
EPLI policies can protect you from a claim from full-time employees, part-time employees, interns, and independent contractors.
What types of issues does EPLI typically cover?
It depends on the exact wording of your EPLI policy, but common coverages are as follows.
- Any form of discrimination
- Sexual harassment
- Firing without cause
- Emotional distress
- Breach of contract
Some EPLI policies even provide coverage for claims of discrimination based on sexual orientation. Federal law does not currently cover this type of discrimination, so you will need to check with your insurance agent to make sure it’s included.
What is NOT covered by EPLI?
Employment Practices Liability Insurance does not cover anything that falls under these two types of policies.
Directors & Officers Insurance
D&O covers negligent acts, omissions, or misleading statements committed by directors within the production company.
Error & Omissions Insurance
E&O protects people who give advice or direction. For instance, it could come into play when a stunt coordinator makes a mistake while directing a stunt. That is the ‘error’ part. Second, it covers situations where a crew member neglected to do what they should have, and someone gets hurt. That is the ‘omission’ part.
How Much Does EPLI Cost?
Several things affect the cost of EPLI.
- Size of the production
- Number of people working on the film
- Where the filming is located
- Number of claims previously filed
Whether or not you purchase an occurrence-based or claims-made policy also affects cost. The first covers incidents that happen during the policy term, regardless of when you submit the claim. The second only covers claims filed during the term of the policy.
Where to Purchase EPLI for Your Film Production
For more information on EPLI in California, contact Equipment & Production Insurance. The team at Equipment and Production Insurance are film, photographic & entertainment industry insurance specialists. Whether you need Workers’ Comp, equipment, rental house, or E&O, you can rely on their quick and knowledgeable assistance to meet all of your needs.