CG 21 47: Employment-Related Practices Exclusion
Current Edition: 04 13 · Full ID: CG 21 47 04 13
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What Is CG 21 47?
This endorsement removes coverage for employment-related claims from the CGL policy. Claims like wrongful termination, workplace discrimination, sexual harassment, and retaliation will not be covered. This is only acceptable if the insured has a separate Employment Practices Liability Insurance (EPLI) policy to handle these exposures.
Technical Summary: Excludes bodily injury or personal and advertising injury arising out of any employment-related practices, policies, acts, or omissions such as refusal to employ, termination, coercion, demotion, evaluation, reassignment, discipline, defamation, harassment, humiliation, discrimination, or malicious prosecution directed at the person's employment. Applies to the insured's current, former, or prospective employees, and may extend to volunteers and independent contractors depending on the edition. Effectively removes EPLI-type exposure from the CGL.
What CG 21 47 Covers
No coverage additions documented.
What CG 21 47 Does NOT Cover
- -Wrongful termination claims by current, former, or prospective employees
- -Workplace discrimination claims (age, race, sex, religion, disability, national origin)
- -Sexual harassment and hostile work environment claims
- -Retaliation claims (whistleblower, workers comp retaliation, FMLA retaliation)
- -Negligent hiring, supervision, or retention related to employment practices
- -Wage and hour disputes to the extent they trigger BI or personal injury allegations
- -Defamation, humiliation, or invasion of privacy in an employment context
- -Failure to promote, wrongful demotion, or constructive discharge claims
Key Provisions
- ●Applies to current, former, and prospective employees of the insured
- ●Excludes both bodily injury and personal/advertising injury arising from employment practices
- ●Encompasses a broad list of employment-related acts: refusal to employ, termination, demotion, evaluation, discipline, harassment, discrimination
- ●Defense coverage for employment claims is also eliminated — insured must fund its own defense
Edition History
- • Expanded the list of excluded employment-related practices
- • Clarified scope regarding prospective employees
- • Updated to align with 2013 CGL program revisions
- • Revised cross-references and definitions
Common Mistakes & E&O Warnings
Employment practices claims are one of the most common and costly exposures for any business with employees. When CG 21 47 is attached to the CGL, the agent must ensure the insured has a separate EPLI policy. Failure to recommend EPLI when the CGL employment exclusion is present is a well-established basis for E&O claims against agents. The risk is amplified because many small business owners believe their 'general liability' covers employment disputes.
- ⚠Believing the CGL covers employment claims by default — the standard CGL has limited employment coverage, and CG 21 47 removes even that
- ⚠Not checking whether the insured has a separate EPLI policy when CG 21 47 is attached
- ⚠Assuming only large employers face employment claims — businesses with as few as 1-2 employees face EEOC and state employment claims
- ⚠Thinking this only excludes 'big' claims like discrimination lawsuits — it also excludes wrongful termination, retaliation, and defamation in an employment context
- ⚠Confusing EPLI with workers compensation — they cover entirely different exposures
Frequently Asked Questions
What employment claims does CG 21 47 exclude?
CG 21 47 excludes wrongful termination, workplace discrimination (age, race, sex, disability, etc.), sexual harassment, retaliation, wrongful demotion, failure to promote, defamation in an employment context, and related claims by current, former, or prospective employees.
Do I need EPLI if CG 21 47 is on my CGL policy?
Yes. CG 21 47 eliminates employment-related coverage from the CGL. A standalone Employment Practices Liability Insurance (EPLI) policy is essential for any business with employees. Employment claims are among the most common lawsuits businesses face.
Is CG 21 47 standard on most CGL policies?
Many carriers attach CG 21 47 or equivalent proprietary exclusions to CGL policies as standard. Agents should verify at every renewal and ensure the insured has separate EPLI coverage.
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