What is Employment Practices Liability Insurance?
Employment Practices Liability Insurance (EPLI) provides insurance protection for businesses and
employees of those businesses from liability that exists related to the managing of employees. All
employees have the right to work in a safe environment, free from harassment and discrimination.
Businesses are responsible for making sure that happens. Businesses are responsible for making sure
that all employees are treating fellow employees fairly and must set appropriate rules and guidelines to
create a safe environment for all employees. They must take appropriate actions to enforce those rules.
Typically, the following types of claims may be covered by an appropriate EPLI policy:
- wrongful termination
- sexual harassment
- employment discrimination
- breach of employment contract
- wrongful failure to employ or promote
- wrongful discipline
- wrongful deprivation of career opportunity
- negligent evaluation
- employment related personal injury
- wrongful failure to grant tenure
- employment related wrongful infliction of emotional distress
- family and medical leave act claims
Why is Employment Practices Liability Insurance Important?
There are four significant reasons this coverage is important.
- First, our society has become increasingly litigious. Especially in the “Me Too” error we are living
in, employees who feel they are being mistreated or who have been mistreated are quick to sue.
Even if they have little grounds in their lawsuit, businesses owners may be forced to spend
significant resources simply for defense. Most are not budgeting for this, and most don’t have
the financial wherewithal to handle this without insurance protection. - Even with the best rules, policies, and oversight, business owners cannot control everything.
One employee may harass another employee for long periods of time before the owner is even
aware. Situations like this can lead to lawsuits. - Simple mistakes are made while running a business. Mistakes related to employment can lead
to significant awards paid to employees and former employees. - Finally, no other insurance provides protection for these claims and most claims lead to
significant payouts. While this data is now almost 15 years old, consider that in employment
practices lawsuits between 2001-2009 ,39% of verdicts awarded were between $100,000 and
$499,999; 45% were over $250,000. Today, the average cost to employers to work with a lawyer
to settle a claim before in reaches trial is around $75,000, but if the case goes to court that
number usually exceeds $125,000!
- First, our society has become increasingly litigious. Especially in the “Me Too” error we are living
Here are some common Coverage Highlights:
- Defense Coverage – Coverage for the cost of attorneys is provided by the policy – usually for
both the business and for business executives who are also being sued. It’s also important to note that insurance companies that provide this coverage typically have established
relationships with legal firms that specialize in this type of claims. The number of legal firms
willing to try a case for the plaintiff are many. Finding the right defense attorney is much more
challenging. This really is an important highlight of coverage that many businesses owner’s
underestimate. - Awards/Damages for Covered Claims – In the event that an employee or former employee was
hurt because of the company or the company’s actions, they are entitled to compensation for
their injury. Such compensation is provided by the policy. It’s important to note that “Punitive
Damages” designed to punish companies is often NOT covered by these policies.
- Defense Coverage – Coverage for the cost of attorneys is provided by the policy – usually for
How Our Team Can Help:
Our experienced team of insurance professionals is here to guide you in determining your needs and finding the appropriate solution. We do this in several ways:
- Tailored Solutions: We understand that every client/situation is unique. Our team will work
closely with you to customize an insurance plan that meets your specific needs and budget. - Risk Assessment: We will conduct a thorough risk assessment of your operations or ownership
interests to identify potential hazards and recommend appropriate coverage options. - Claims Assistance: In the event of a claim, our dedicated claims specialists will assist you
throughout the claims process, ensuring a smooth and hassle-free experience. - Expert Advice: With our in-depth knowledge of the insurance market, we can provide expert
advice and guidance to help you make informed decisions about your insurance coverage.
- Tailored Solutions: We understand that every client/situation is unique. Our team will work
Get Started Today!
Protect your investment and minimize financial risks with Employment Practices Liability Insurance.
Contact our team today to learn more about our insurance solutions and how we can help safeguard
your ownership or business interests.