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immigration violation coverage endorsement

A type of coverage endorsement sometimes added to employment practices liability insurance (EPLI) policies. Only a handful of insurers offer these endorsements, which usually address three types of costs otherwise excluded by the standard provisions of EPLI policies. These costs include coverage for (1) defending managers/supervisors charged with criminal violations of federal, state, and local immigration laws; (2) criminal fines and penalties; and (3) civil fines and penalties. Coverage is usually subject to a sublimit (e.g., $25,000) that is part of—not in addition to—the policy's regular limit. When payments are made under these endorsements, they reduce the policy's limit. One caveat associated with this endorsement is that coverage for civil and criminal fines/penalties may be considered contrary to public policy and, thus, uninsurable in certain jurisdictions. However, to date there have been no known challenges to the coverage provided by such an endorsement. See also Employment practices liability.

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