Employment Practice Liability Insurance (EPLI)
EPLI covers businesses against claims by workers that their legal rights have been violated. The number of lawsuits filed by employees against their employers has been rising significantly in recent years. While most suits are filed against relatively large corporations, no company is immune.
Recognizing that smaller companies now need this kind of protection, some insurers provide this coverage as an endorsement to their Businessowners Policy (BOP). An endorsement changes the terms and conditions of the policy. Some insurers offer EPLI as a stand-alone coverage.
EPLI provides protection against many kinds of employee lawsuits, including claims of:
- Sexual harassment
- Breach of employment contract
- Wrongful termination
- Wrongful discipline
- Wrongful infliction of emotional distress
- Negligent evaluation
- Failure to employ or promote
- Deprivation of career opportunity
- Mismanagement of employee benefit plans
The cost of EPLI coverage depends on your type of business, the number of employees and various risk factors such as whether your company has been sued over employment practices in the past.
The policies will reimburse your company against the costs of defending a lawsuit in court as well as for judgments and settlements. The policy covers legal costs, whether or not your company wins or loses the suit. Policies typically do not pay for punitive damages or civil or criminal fines. Liabilities covered by other insurance policies are excluded from EPLI policies.
For more information about EPLI insurance, call us at