What Is Employment Practices Liability Insurance?

Any business with employees is vulnerable to litigation from their workers, regardless of the size of the company. Over time, regulations have been implemented to empower and protect employees from wrongful actions in the workplace. These laws have led to an increasing number of lawsuits against employers, with most lawsuits brought against companies employing fewer than 100 people. Employment practices liability insurance (EPLI) provides protection for businesses of any size.

EPLI Policy Coverages

EPLI insurance coverage safeguards businesses against the financial damages incurred when an employee sues the company for wrongful practices. Every company is subject to potential losses, including those with strong operational, conduct and employment guidelines. The costs in out-of-court settlements can be high, and for cases going to court, financial damages can be staggering. Working with an experienced broker can provide protections against lawsuits involving:

  • Wrongful termination
  • Failure to employ
  • Failure to promote or wrongful demotion
  • Age, sex or race discrimination
  • Sexual harassment charges against employees, independent contractors, vendors, etc.
  • Hostile work environment or workplace harassment
  • FMLA- and FLSA-related suits

Employee or prospective employee lawsuits can result in catastrophic financial losses for businesses, especially small companies that do not have the resources to pay for attorney’s fees, court costs and potential damages. Securing an EPLI policy is insuring the future, for the company and the people it serves.