||What is Employment Practices Liability Insurance (EPLI)?
EPLI provides protection against allegations arising from the employer/employee relationship. It shields employers from a variety of wrongful employment acts, covers defense costs, judgments and settlements for the corporate entity, former and current employees, directors, and officers. It covers a variety of workplace-related legal actions, including, but not limited to:
The cost of EPLI coverage depends on your type of business, the number of employees and various risk factors. The policies will reimburse the company against the costs of defending a lawsuit in court and for judgments and settlements. The policy covers legal costs, whether your company wins or loses the suit. Policies also typically do not pay for punitive damages or civil or criminal fines. Liabilities covered by other insurance policies such as workers compensation are excluded from EPLI policies.
- Breach of employment contract
- Deprivation of career opportunity
- Failure to employ or promote
- Mismanagement of employee benefit plans
- Negligent evaluation
- Sexual harassment
- Wrongful discipline
- Wrongful infliction of emotional distress
- Wrongful termination
Why do we need this?
Age Discrimination claims are on the rise as companies are able to more quickly cut costs by termination an experienced employee earning more than a younger, less experienced employee. Small to midsize companies are particularly at risk to employment practices related claims since these companies often lack the resources available in a larger corporation. It is difficult to stay current with changes in employment law, let alone develop, implement and maintain procedures to ensure compliance with regulations.
Who needs it?
One would only have to look at the recent trends in employment-related litigation to determine that EPLI coverage is an essential part of any company's risk management strategy. The number of lawsuits filed by employees against their employers has been rising. While most suits are filed against large corporations, no company is immune to such lawsuits. Even firms with the strongest policies and procedures are subject to claims and have to defend frivolous suits. Defense costs alone may exceed $250,000 for any lawsuit and may take years to resolve. No company bears the risk of fire, theft or customer injury without the protection of insurance. Yet, it is far more likely that a company will face an employee lawsuit than the devastating effects of a fire.
In order to get a quote, please click and download the appropriate form below, complete it, and either email to firstname.lastname@example.org or fax to 408-997-7890