Employment Practices Liability Insurance (EPLI)

Employment Practices Liability Insurance (EPLI)

Most businesses invest in liability insurance thinking that this will be sufficient in protecting them against costly lawsuits. However, standard liability insurance does not adequately cover employee-related risks. EPLI helps fill the gap, covering the company, directors and officers, and other employees against allegations involving:

• Retardation
• Discrimination
• Sexual Harassment
• Failure to employ or promote
• Breach of employment contract
• Negligent evaluation
• Wrongful termination
• Wrongful Discipline
• Non-compliance with the
Americans with Disabilities Act

If third-party coverage endorsement is part of an EPLI policy, the policy will also protect against conflicts between employees and third parties like vendors or customers.

EPLI for Your Business

Any company may be targeted for EPL lawsuit. Even if your company is innocent, the cost of defending yourself against EPL claims is expensive. Additionally, your company’s reputation may suffer and current employees’ morale may be negatively impacted. Many business owners do not consider EPLI a practical business expense. If you do not see EPLI as an investment worth making, consider the following statistic:

81% of claims settle at an average of $22,400 to $40,500.
(Equal Employment Opportunity Commission)

The reality is that EPL related litigation is costly and such cases are the most common among all businesses. EPLI offers financial security against employee-related claims and is a valuable risk-management tool, providing true value to business owners. If your company insurance policy does not currently include EPL coverage, call us for a quote or fill out your information below.