Employment practices liability insurance overview
February 26, 2020
Employment practices liability insurance (EPLI) provides coverage for allegations made by employees, former employees, job candidates, customers and vendors related to your business’s employment practices. Often these allegations result in litigation, with costs quickly adding up into hundreds of thousands of dollars. Whether you run an established company or are starting a small business, it’s important to have the right insurance coverage to help protect you.
EPLI provides protection against many types of employee lawsuits. Some of the most common categories include:
- Discrimination based on age, race, gender, religion, national origin and other factors
- Sexual and other forms of employee harassment
- Wrongful termination or discipline
- Breach of employment contract (i.e., oral, written or implied, including employment handbooks and personnel manuals)
- Failure to employ or promote
- Mismanagement of employee benefit plans
- Privacy violations, including employee medical information governed by the Health Insurance Portability and Accountability Act (HIPAA)
- Violations of the Family and Medical Leave Act
Examples of EPLI claims
The scope of potential employment practices liability is broad. EPLI claims can involve:
- Things that happen (or are alleged to have happened) to your current employees (such as harassment from a colleague or superior).
- Acts by your employees toward a vendor or customer. For example, decisions made by an employee of a property management company could lead to tenant discrimination claims against your business.
- Allegations from former employees or seasonal employees (such as an allegation of wrongful termination).
- Claims made by candidates who sought employment with you but were not hired.
Cost of EPLI
The cost of EPLI coverage depends on your type of business, the number of employees you have and various risk factors (such as whether your company has ever been sued over employment practices in the past). It’s important to talk with a knowledgeable agent to discuss your specific situation and the need for EPLI coverage.
What EPLI covers
An EPLI policy will reimburse your company for the costs of defending a lawsuit in court, for judgments and for settlements. Remember that EPLI covers your legal costs, whether your company wins or loses the suit.
How to get a quote on EPLI coverage
It’s easy to get a no-obligation quote. Just click below to contact us. We’re here for you.
Insurance products and services offered through McGriff Insurance Services, Inc., a subsidiary of Truist Insurance Holdings, Inc., are not a deposit, not FDIC insured, not guaranteed by a bank, not insured by any federal government agency and may go down in value.
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