EPLI Available for Hospitality, Medical Industries.

More than 60 companies have begun offering employment practices liability insurance since its rollout in 1990, according to the Insurance Information Institute.

The institute reports that some of the forces behind this growth include court decisions that have broadened the need for coverage; heightened public awareness; and changing workforce demographics. Forty-nine major federal statutes--ranging from the Taft-Hartley Act to the Americans With Disabilities Act--have the power to bring an employer before a jury in an employment practices liability lawsuit. The number of sexual-harassment suits filed with the Equal Employment Opportunity Commission grew from 6,883 in 1991 to 15,222 in 1999.

Princeton Insurance Cos. offers employment practices liability coverage to medical professionals who carry the company's professional liability insurance. The policy, offered on an occurrence basis, protects against lawsuits that allege wrongful termination, sexual harassment and other employment-related incidents. Other employment practices cases include wage disputes, failure to provide benefits and violations of federal and state leave-of absence laws. The Princeton, N.J.-based insurer reports the average cost of an employment practices liability claim, including attorneys' fees, is $400,000.

Lexington Insurance Co., a unit of American International Group, has a new employment practices liability policy for the hospitality industry, which ranks among the most susceptible to employee lawsuits. This industry has greater exposures because of its high employee turnover rate, which may lead to wrongful termination suits. In addition, many employees work late hours in close quarters, which can lead to sexual-harassment allegations.