Employment practices liability insurance (EPLI) is a type of liability insurance that protects you from the risks associated with lawsuits filed by your employees. Some business owner insurance policies may include EPLI endorsements but those policies usually have low payment limits for defense and indemnity matters. Thus it is important to determine if you are better suited for an EPLI standalone policy. It can help pay for legal expenses and damages if your company is sued. These lawsuits may come from:
What Does Employment Practices Liability Insurance Cover?
Depending on the type of policy you purchase, it may provide coverage for a variety of things, including:
- Legal defense costs
- Damages awarded to an employee who feels like they were not treated fairly or appropriately
- Damages awarded to an employee who feels like they cannot speak up about any concerns they may have
- Damages awarded to an employee who believes they were not compensated fairly or appropriately
- Damages awarded to an employee who feels discriminated against
- Damages awarded to an employee who feels threatened in their workplace
How does EPLI work?
Employment practices liability insurance is an extra line of defense that protects your company from lawsuits based on employment-related issues. Let’s say, for example, one of your employees feels like they were not treated fairly or appropriately and decides to file a lawsuit against your company.
EPLI will help pay for legal expenses and damages if your company is sued. Some common types of EPLI coverage include damages for wrongful termination, violations of civil rights law, sexual harassment, or defamation.
It can also cover any other damages related to employment-related issues such as breach of contract, breach of fiduciary duty, discrimination claims, or unfair wages.
It is important for organizations to have this insurance considering the potential liability for establishments that employ individuals. If you have employees, be sure to give us a call at 248-362-1313 or fill out the contact form below to learn more about this type of coverage.
