Cost

How much does it cost?

Our standard MEMIC EPLI product is just $32 per full-time equivalent employee per year for the standard coverage with a deductible of $5,000 and a limit of $100,000.

Other options for deductibles and higher limits are available. Contact your insurance agent to discuss these options.

To arrive at your premium for this additional product, simply multiply the number of full-time equivalent employees by $32. The enhanced product, which can include broadened coverage such as third party/punitive damages and prior acts, must be submitted to your MEMIC underwriter for a quote. Certain types of businesses, or employers with previous EPLI claims may be subject to a 25 percent surcharge.

What is the minimum premium?

There is no minimum premium. If an employer has a single covered employee for the standard $5,000 deductible/$100,000 limit option, the charge would be $32 for the endorsement for the year.

How do I calculate a full-time equivalent employee?

For the purposes of this coverage, part-time employees should be counted as .5 while each full-time employee is counted as 1. Simply add the total and round to the nearest whole number to arrive at the employee number.

Also, it is important to note that employees (such as owners and officers) cannot be excluded from EPLI as they are from workers’ compensation. Board members or officers who are active in the operation must be included in this calculation even if they are excluded for workers’ compensation purposes.