Employment Practices Liability Insurance

Employment Practices Liability Insurance

Employment Practices Liability Insurance, or EPLI, provides coverage for a variety of lawsuits that can be brought against an employer by employees. 

Claims of these types are not covered under General Liability or Workers Compensation policies. Many business owners think that they have coverage for employment-related claims under their other policies, leaving them with a gap in coverage. EPLI claims are increasing, and businesses of all sizes need to know about the importance of this coverage.

What does EPLI Cover?

EPLI insurance covers a wide range of employment-related lawsuits, including:

–          Wrongful Termination

–          Discrimination (age, race, sex, disability)

–          Sexual Harassment

–          Emotional Distress

–          Retaliation

–          Employment Contract Breach

–          Employee Benefit Plan Mismanagement

–          Failure to Employ or Promote

–          Deprivations of Career Opportunity

–          Negligent Evaluation

Who Needs EPLI Coverage?

Any business that has employees, or is about to hire employees needs this vital coverage. It will provide coverage for employment claims by prospective employees as well as current employees.

Small businesses can face the same claims as large corporations. Because they often do not have a separate HR department, a small business owner can be more open to employment claims, especially due to the lack of having policies and procedures in place.

More about EPLI

Employment Practices Liability Insurance can be added as part of the Business owners Policy, Package Policy, as part of a Management Liability policy, or it can be written as a stand-alone policy.  The coverage is usually claims made, which means continuity of coverage is important.

The cost of coverage is based on several factors, including the number of employees, what practices and policies are in place, employee turnover rate, and claims history. 

At Fixated Financial, we can frequently add EPLI coverage as part of your BOP or Package, include it as part of a Management Liability policy that can also include Directors & Officers and Fiduciary Liability, or as a stand-alone policy.  In addition to finding the limits that work best for your business, our EPLI carriers also include resources to help you avoid a claim and a hotline for employment-related questions.  Contact either Laura Ruetz at [email protected]or Veronica Melgoza at [email protected] for an application or more information.