EPLI is typically written on a claims-made or claims-made-and-reported form. That means the timing and reporting of a claim are conditions to coverage, not suggestions. Many forms also require the insured to cooperate with the investigation and obtain the carrier’s consent before settling. If these conditions are not met, coverage can be narrowed or denied regardless of the underlying facts [1].
Beyond those universal conditions, insurers actively look for operational discipline. Modern EPLI applications ask whether you maintain written anti-discrimination/anti-harassment policies and even inquire about ADA accommodations practices. Some carriers make written policies a requirement to bind or continue coverage (for example, requiring the insured to implement specified employment policies within a fixed period). Misrepresentations or omissions in these applications can lead to rescission or denial. Put simply: if you tell the insurer you have a policy or process and you don’t, you can jeopardize coverage [2][3][4].
Finally, even when coverage applies, EPLI generally will not pay for what ADA/PWFA disputes most often require: compliance with injunctive relief or the cost to provide accommodations (equipment, job restructuring, schedule changes, interpreters, physical modifications). Those remain operational costs for the employer [5][6].
Under ADA Title I, employers must provide reasonable accommodations so qualified applicants can participate in hiring and qualified employees can perform essential functions or enjoy equal benefits, absent undue hardship. PWFA adds similar duties for pregnancy, childbirth, and related conditions, with the EEOC’s final regulations effective June 18, 2024. Having a process means you’re structurally able to do the following, every time [7][8]:
When this infrastructure exists, counsel can mount a better defense, and your insurer has the contemporaneous records it needs to evaluate and fund a defense. When it doesn’t, disputes escalate, timelines slip, and conditions to coverage (like prompt notice and cooperation) become harder to meet.
First, you risk a merits loss under ADA Title I or PWFA because the law expects individualized, timely engagement and reasonable accommodation absent undue hardship. Second, you increase insurance friction:
This is playing out against an active enforcement backdrop. The EEOC filed 143 merits lawsuits in FY 2023, with disability-related litigation continuing into 2024. Employers without a disciplined process are simply higher-risk — both legally and for smooth insurance recoveries [11].
Write it down, run it the same way every time, and be prepared to show your work:
Disclo gives HR and Legal a standardized, auditable system for ADA Title I and PWFA accommodations across hiring and employment. It captures requests, timelines, analyses, and decisions in one place; separates PHI from other HR data; guides managers and recruiters through the steps; and produces the contemporaneous documentation your attorneys and carriers expect. The result is fewer disputes, stronger defenses, and a cleaner path to satisfying policy conditions if you do have a claim.
Disclaimer: This article is for general information only and not legal or insurance advice. Always review your actual policy language with counsel and your broker.
EPLI doesn’t fund accommodations and can restrict coverage if you don’t follow a documented ADA/PWFA process. Here’s what “having a process” really means.
EPLI is typically written on a claims-made or claims-made-and-reported form. That means the timing and reporting of a claim are conditions to coverage, not suggestions. Many forms also require the insured to cooperate with the investigation and obtain the carrier’s consent before settling. If these conditions are not met, coverage can be narrowed or denied regardless of the underlying facts [1].
Beyond those universal conditions, insurers actively look for operational discipline. Modern EPLI applications ask whether you maintain written anti-discrimination/anti-harassment policies and even inquire about ADA accommodations practices. Some carriers make written policies a requirement to bind or continue coverage (for example, requiring the insured to implement specified employment policies within a fixed period). Misrepresentations or omissions in these applications can lead to rescission or denial. Put simply: if you tell the insurer you have a policy or process and you don’t, you can jeopardize coverage [2][3][4].
Finally, even when coverage applies, EPLI generally will not pay for what ADA/PWFA disputes most often require: compliance with injunctive relief or the cost to provide accommodations (equipment, job restructuring, schedule changes, interpreters, physical modifications). Those remain operational costs for the employer [5][6].
Under ADA Title I, employers must provide reasonable accommodations so qualified applicants can participate in hiring and qualified employees can perform essential functions or enjoy equal benefits, absent undue hardship. PWFA adds similar duties for pregnancy, childbirth, and related conditions, with the EEOC’s final regulations effective June 18, 2024. Having a process means you’re structurally able to do the following, every time [7][8]:
When this infrastructure exists, counsel can mount a better defense, and your insurer has the contemporaneous records it needs to evaluate and fund a defense. When it doesn’t, disputes escalate, timelines slip, and conditions to coverage (like prompt notice and cooperation) become harder to meet.
First, you risk a merits loss under ADA Title I or PWFA because the law expects individualized, timely engagement and reasonable accommodation absent undue hardship. Second, you increase insurance friction:
This is playing out against an active enforcement backdrop. The EEOC filed 143 merits lawsuits in FY 2023, with disability-related litigation continuing into 2024. Employers without a disciplined process are simply higher-risk — both legally and for smooth insurance recoveries [11].
Write it down, run it the same way every time, and be prepared to show your work:
Disclo gives HR and Legal a standardized, auditable system for ADA Title I and PWFA accommodations across hiring and employment. It captures requests, timelines, analyses, and decisions in one place; separates PHI from other HR data; guides managers and recruiters through the steps; and produces the contemporaneous documentation your attorneys and carriers expect. The result is fewer disputes, stronger defenses, and a cleaner path to satisfying policy conditions if you do have a claim.
Disclaimer: This article is for general information only and not legal or insurance advice. Always review your actual policy language with counsel and your broker.
