What is employment practices liability insurance?

Employment practices liability insurance is coverage that protects a company against wrongful acts claims that arise out of any point in the process of employment. Some of these claims might include sexual harassment, discrimination, retaliation, wrongful termination, invasion of privacy, negligent evaluation, deprivation of career advancement, and a variety of others. EPLI is often an endorsement of a general liability policy or business owner's policy but could also be a stand-alone policy that works well with the business owner's policy.

The cost of EPLI is dependent on a variety of factors. This includes the number of employees you have, your employee turnover rate, if you’ve had other claims filed against your company, and what types of rules and practices you have in place.

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When do I need to be aware of employment practices liability insurance?

Any business owner with one or more employees should consider employment practices liability insurance. Even during the interview process, you run the risk of offending a potential candidate for employment. That risk lasts throughout employment and even through termination of some employees, so coverage is essential at all times.

What is important to know about employment practices liability insurance?

Although the stakes are high, there are some things you can do to lower the risk of employment practices liability. The first step is to purchase adequate employment practices liability insurance and experience the following benefits:

EPLI offers protection against wrongful acts, but also goes so far as to protect against alleged wrongful acts so you’re never left hanging.
With EPLI, you have access to the legal help you need in a stressful situation.
When you implement risk-reducing strategies, including purchasing proper insurance, you are better equipped as a company to handle the situation when it arises.
Legal costs incurred, whether you win or lose the case, are covered under an EPLI policy.
EPLI can be offered as an endorsement for small businesses.