What is employment practices liability?
Employment practices liability insurance (EPLI) is a policy used to cover your risks due to some of the most common employment-related lawsuits, including:
Wrongful termination: The discharge of an employee for invalid reasons.
Discrimination: The denial of equal treatment to employees who are members of a protected class.
Sexual harassment: Subjecting an employee to unwelcome sexual advances, obscene or offensive remarks, or the failure to stop such behavior.
Does my business need EPLI?
In our increasingly litigious society, the threat of a lawsuit hangs over every business transaction, large or small.
Even employers who adhere to the letter of the law at all times are likely be sued by an aggrieved employee or customer at some point. While many suits are groundless, defending against them is costly and time consuming.
Benefits of employment practices liability
Coverage for alleged acts
EPLI not only protects organizations from actual wrongful acts, but alleged acts as well. EPLI coverage can safeguard an organization from claims related to discrimination, harassment, retaliation and wrongful termination.
Access to legal help
Strong EPLI policies prove the insured with access to legal resources. This can prove invaluable if you need advice quickly.
Timely response to lawsuits
Employees suing their employers is common, and organizations will want to e prepared. This is especially important when you consider that there is no cap on how much a jury can award and that settlements in employment-related cases can easily reach six figures.
Additional protection for your directors and officers
While directors and offices (D&O) insurance can defend against employment-related lawsuits, dedicated EPLI is necessary for many organizations. Having a policy that provides separate coverage for lawsuits connected to wrongful terminations, discrimination, invasion of privacy and similar claims ensures that the limits on your D&O policy aren’t exhausted unnecessarily.
More management liability coverages
Directors and officers liability (D&O)
Covers losses caused by a director or officer’s alleged mismanagement or improper conduct.
Covers losses resulting from mismanagement of employee benefit and pension plans.
Errors and omissions (E&O)
Covers losses resulting from negligent acts, omissions or errors.