ACORD Form GuideACORD 58

ACORD 58 — Employment Practices Liability Application

The ACORD 58 Employment Practices Liability Application is used to apply for EPLI — insurance that covers claims made by employees or job applicants alleging wrongful employment practices. EPLI covers claims of discrimination, harassment, wrongful termination, failure to promote, retaliation, and other employment-related allegations. It is one of the most important and underused commercial coverages, particularly for small and mid-size employers.

When is ACORD 58 used?

EPLI is appropriate for any business with employees: • Small businesses with as few as 5 employees have faced significant EPLI claims • Businesses in high-turnover industries (hospitality, retail, healthcare staffing) • Companies that have recently laid off employees or conducted reductions in force • Businesses with rapid growth or significant management changes • Any employer in states with aggressive employment laws (California, New York, New Jersey)

What EPLI covers

EPLI responds to claims by current employees, former employees, and job applicants alleging:

• Discrimination (based on race, gender, age, religion, disability, sexual orientation, etc.) • Sexual harassment and hostile work environment claims • Wrongful termination (including constructive discharge) • Failure to promote or unequal pay • Retaliation for complaints or protected activity • Breach of employment contract • Negligent evaluation or misrepresentation in employment context

EPLI is almost always claims-made coverage. Like professional liability, the policy in force when the claim is made responds — not the policy in force when the alleged act occurred.

Key ACORD 58 underwriting questions

EPLI underwriters want to know:

• Total number of employees (full-time, part-time, seasonal) • Employee turnover rate • States where employees are located (California exposure is rated higher) • Whether the employer has written employment policies and an employee handbook • Whether supervisors receive regular anti-harassment training • Whether there is a written procedure for employees to report complaints • Number and description of any prior EPLI claims or EEOC charges in the past 5 years • Any pending investigations, lawsuits, or EEOC charges

Third-party EPLI and why it matters

Standard EPLI covers claims by employees. Third-party EPLI extends coverage to claims by non-employees — customers, vendors, or other third parties who allege harassment or discrimination by the insured's employees.

Third-party EPLI is particularly important for retail, hospitality, and service businesses where employees interact directly with the public. A customer who alleges sexual harassment by an employee could bring a claim that the standard EPLI policy doesn't cover without the third-party extension.

Common ACORD 58 mistakes

Not offering EPLI to small employers — smaller businesses often face EPLI claims and rarely have it

Not asking about pending EEOC charges or investigations before binding

Forgetting to ask about California employees — California exposure significantly affects EPLI pricing

Not offering third-party EPLI extension for businesses with significant customer interaction

Not advising clients that prior EEOC charges are likely to be excluded from the new policy

Companion ACORD forms

ACORD 125
Commercial Insurance Application
ACORD 57
Professional Liability Application
ACORD 59
Directors and Officers Application

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Related

EPLI insurance guideEmployment practices liability explainedCommercial insurance for restaurants (high EPLI exposure)Insurance for staffing agencies