What is Employer Practices Liability Insurance?
The Employer Practices Liability Insurance, commonly known as EPL or EPLI, provides coverage against a variety of employee claims.
Being a company owner may seem like the best job in the world. However, it is also the most vulnerable position, because you work with many people. And people sometimes disagree with each other. As a result, conflicts will arise sooner or later. No matter how careful you are.
For instance, you can be sued by a job applicant, over a discriminating comment made by an employee of yours. And it doesn’t matter how long the employee has been around, either.
The EPLI is a type of commercial insurance that provides coverage against a variety of employee claims. The most common cases of such claims include discrimination and sexual harassment, for example. But wrongful discipline or evaluation, as well as workplace bullying, can also lead to lawsuit against your company.
Who is it suitable for?
Big companies and corporations often have employment practices which are created in order to avoid or deal with employment lawsuit. However, small companies don’t have the same luxury, due to the lack of legal department. So, small businesses are more vulnerable to employment claims.
This is why the Employer Practices Liability Insurance is very important for every business with employees, but mostly for those without a legal department. Because claims can occur at any time, mostly due to misunderstanding.
Coverages
Employer Practices Liability Insurance helps businesses endure as well as prevail in case of employee claims for acts including:
- Discrimination based on sex, rase, disability or age;
- Harassment (employment or sexual);
- Retaliation;
- Wrongful discipline;
- Failure to promote or employ;
- Wrongful evaluation;
- Workplace bullying;
- many more
What is the cost of the EPLI?
The Employer Practices Liability Insurance cost is based on several factors. Including:
- Number of employees;
- Previous lawsuits against you or your company;
- Percentage of employee turnover;
- Whether you have an employee handbook or any other established rules and practices in place.
Give us a call and our insurance advisers will help you get the coverages you need to protect your business and livelihood.
All content is for general information purposes and does not constitute insurance or legal advice.
