A host of high profile legal battles over the past few years in the United States, involving employees, suing their employers (for a variety of reasons, such as wrongful termination, sexual harassment, discrimination, invasion of privacy, breach of contract, emotional distress, etc.), has swung the spotlight on the insurance options available to protect companies from expensive lawsuits. Employment Practices Liability Insurance provides coverage to companies against a host of risks related to employee engagement as listed above. This liability if left uninsured, may give rise to crippling direct costs associated with litigation, and may also give rise to indirect costs arising out of bad publicity, to the company concerned.
What types of coverage are provided by Employment Practices Liability Insurance?
The EPLI typically provides coverage to the company or business on the following fronts:
- Costs arising out of litigation
- Cost of Settlements and Damages against the company concerned
What kind of companies are eligible to purchase EPLI?
All companies or businesses are eligible to purchase EPL insurance. The cost of the coverage provided by the insurance, depends on the size of business and exposure to perceived risks. Services of qualified insurance agents are usually taken in this regard.
Employment Practices Liability, deals with the many laws which have been enacted by the United States Federal and State governments, over the past few decades, pertaining to the protection of the rights of an employee.