Who Do You Have Working For You? Employment Practice Liability Insurance (EPLI)

Employment Practices Liability Insurance (EPLI) covers businesses against claims by their current employees, past employees, or job applicants that feel their legal rights may have been violated.
Several Examples of possible claims include but are not limed to the following:

Sexual harassment

Discrimination

Wrongful termination

Wrongful discipline

Failure to employ or promote

EPLI can pay for the liability award damages and defense costs brought against a company. Employment practices claims have been on the rise over the last several years.

Nearly 50% of employment practice charges are against small businesses. Even groundless charges require legal defense and those cost can be significant. No matter how operationally sound a business may be; an employee can allege anything they want. Guilt or innocence becomes immaterial when a claim is brought against an employer. They have to defend themselves and the defense costs will either come from an EPLI policy or the business owners’ pockets. Businesses need to protect themselves even against claims without merit.

When you consider generally low levels of workplace morale, the state of the economy and our overly litigious society, businesses have a higher susceptibility to employment claims now more than ever. Make sure your business is protected from this exposure. Review your policy and talk with your insurance agent today.

-Heather Basdekis