Employment Practices Liability Insurance (EPLI)
Additional Information
EPLI Insurance covers businesses against claims by workers that their legal rights as employees of the company have been violated.
The number of lawsuits filed by employees against their employers has been rising.
While most suits are filed against large corporations, no company is immune to such lawsuits.
Recognizing that smaller companies are at risk for EPLI claims, makes it prudent for any business owner to add EPLI Insurance coverage to ensure they are protected.
EPLI Insurance provides protection against many kinds of employee lawsuits, including claims of:
- Sexual harassment
- Discrimination
- Wrongful termination
- Breach of employment contract
- Negligent evaluation
- Failure to employ or promote
- Wrongful discipline
- Deprivation of career opportunity
- Wrongful infliction of emotional distress
- Mismanagement of employee benefit plans
The cost of EPLI Insurance coverage depends on your type of business, the number of employees you have and various risk factors such as whether your company has been sued over employment practices in the past.
The policies will reimburse your company against the costs of defending a lawsuit in court and for judgments and settlements. The policy covers legal costs, whether your company wins or loses the suit. Policies also typically do not pay for punitive damages or civil or criminal fines. Liabilities covered by other insurance policies such as workers compensation are excluded from EPLI policies.
