Employment Practices Liability Insurance (EPLI) covers businesses against claims by workers that their legal rights as employees of the company have been violated.
No matter the size of your company, there is a need for EPLI. Most suits are filed against large corporations, no company should be without this liability protection. Even if your company only has 1 employee! Whether you can get an endorsement to your Businessowners policy, or need a standalone EPLI policy, there are many reasons to buy this coverage. Watch this short video to learn more: "https://www.youtube.com/embed/9KmgsEL19aM"
Some of the claims an employee can make, are as follows:
- Sexual harassment
- 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
A claim may be groundless, but the EPLI policy will pay for the defense of the claim against you. In addition, it will cover you for judgments or settlements. EPLI policies typically do not pay for punitive damages or civil or criminal fines.
The cost of EPLI 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.