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.