Employment Practices Liability Insurance

Protect Your Business Against Employment Practices Claims

EPLI Coverage Shields Against Legal Issues from Employment Practices

Employment practices liability insurance (EPLI) refers to the risk that businesses face regarding their employment practices and the potential legal liabilities arising from them.

Despite the common perception that large corporations are the primary targets, businesses of all sizes are susceptible to employment practices liability litigation, even when they operate with the best intentions towards their employees.

EPLI claims are costly and time-consuming. Most employee lawsuits last at least one and half years, and on average, defense costs over $100,000 per case.

EPL insurance fills the gap left by other policies, providing protection against employment-related claims. It can be purchased as a standalone policy or included as part of a package with additional coverages.

What Does EPL Insurance Cover?

Employment practices liability insurance protects against a variety of employment-related claims including, but not limited to:

Workplace discrimination
Sexual harassment
Wrongful termination
Retaliation
Wage & hour law violations
Wrongful discipline

Mitigating Employment Liability Risks with EPL Insurance

Not having employment practices liability insurance (EPLI) exposes businesses to significant financial and reputational risks. Without coverage, companies face potential financial losses due to legal expenses and damages from employment-related lawsuits. These lawsuits can also damage a company’s reputation, leading to negative publicity and loss of trust among stakeholders. Operationally, dealing with such lawsuits can disrupt business operations, hinder productivity, and divert resources away from core activities.

Frequently Asked Questions

Why do businesses need employment practices liability insurance?

Businesses need EPL insurance because it protects them from the high costs of defending against employee claims, settling them, or helps cover judgment payments if the case is lost. As employment-related lawsuits can be financially draining and damaging to a company’s reputation, EPL insurance helps ensure the stability and continuity of operations.

Can small businesses benefit from employment practices liability insurance?

Absolutely. Small businesses often face significant financial and reputational risks from employment disputes. EPL insurance provides a safety net, ensuring that even small entities can defend against employment-related claims without jeopardizing their financial stability.

What happens if a business faces a claim exceeding the EPL insurance coverage limit?

If a claim exceeds the coverage limit of an EPL insurance policy, the business is responsible for paying the difference. This underscores the importance of selecting adequate coverage limits based on the company’s size, industry, and exposure to potential claims.

How can businesses reduce their EPL insurance premiums?

Businesses can reduce these premiums by implementing strong employment practices, conducting regular training on harassment and discrimination, maintaining a clear employee handbook, and promptly addressing complaints. Demonstrating a commitment to a safe and compliant workplace can lower the risk profile and, consequently, the insurance cost.

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Additional Coverages

General Liability Insurance

General Liability Insurance keeps your business safe from financial trouble if someone gets hurt or their property gets damaged because of your business. It covers legal fees, medical expenses, and damages. Perfect for any business wanting peace of mind against unexpected claims.

Worker's Compensation Insurance

Mandatory in most states, this insurance covers medical expenses and a portion of lost wages for employees who get injured or sick from their job.

Commercial Property Insurance

Plan for the unexpected. Protect your company’s physical assets, such as its building, and contents, including inventory, furniture, and equipment with commercial property insurance. It covers losses should your business have a fire, explosions, burst pipes, storms, theft, or vandalism.

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