Why Employers Need EPLI Coverage

Why Employers Need EPLI Coverage

Employment Practices Liability is insurance for every business.  

Whether your company is large or small, you are still at risk of lawsuits coming in from disgruntled employees as well as legal conflicts that flare up between staff and third parties. In this litigious society, a business can never be too careful. That’s where Employment Practices Liability Insurance (EPLI) steps in.

Protecting from employee-related lawsuits, EPLI works to safeguard a business from the financial strain that comes with lengthy legal cases. Workplace discrimination cases have soared over thirty-two percent in recent years, including suits related to race, gender, age bias, wrongful termination, and noncompliance with laws such as the Americans with Disabilities Act, Family and Medical Leave Act, Affordable Health Care Act, and more. No matter how well you run your business, a customer or employee can sue at any time.

EPLI coverage provides more protection than standard liability insurance policies. If the risks are high in your business, buying EPLI may be a reasonable expenditure – and well worth it. It can cover lawsuits over employee allegations of:

  • Sexual harassment
  • Discrimination
  • Defamation
  • Retaliation
  • Wrongful termination or demotion
  • Mismanagement of benefits

Do not that you don’t necessarily have to be guilty of one of these offenses to face an accusation. Employment practices can be emotionally draining and costly to resolve. EPLI helps to ease the burden by covering legal fees, investigation costs, and judgements or settlements.

Employment practices lawsuits can spring up anytime during the employer-employee relationship, including:

  • Hiring
  • Employment
  • Promotions
  • Terminations

You can help to protect your business by:

  • Ensuring current policies and procedures comply with applicable federal, state, and local laws
  • Writing job descriptions and advertisements that only list job-relevant requirements
  • Evaluating candidates with a consistent and standardized methodology that focuses on successful job performance
  • Treating all employees professionally
  • Consistently applying your company’s policies and procedures

In addition to securing the right Employment Practices Liability Insurance, your business will need the right business insurance to begin with. Contact CAV Insurance today!