Employment Practices Liability Coverage (EPLI)
Employment Practices Liability Coverage (EPLI) is a policy that protects a business from claims filed by employees. The claims deal with issues concerning workers and accusations of legal rights being violated. It’s a form of business insurance, similar to Directors and Officers Liability, that is for the protection of the business.
A business might consider EPLI because lawsuits are more common. And the more employees as business has, the more likely an incident is to occur. These types of lawsuits are most often filed against large companies, but smaller companies are at risk too.
An insurer might offer EPLI has an addition to an existing business insurance policy. This is most often done for a small business. But in some cases, an insurer might offer EPLI as a stand-alone policy.
Employees and Lawsuits
There are several issues that can result in an employee suing a company. Some of the most common reasons include:
1 Discrimination based on race, gender, or sexual orientation
2 Termination considered wrongful by the employee
3 Participating in unfair discipline practices
4 Breach of contract
5 Purposely inflicting on-the-job emotional distress
6 Misuse of employee benefits
How Does EPLI Help?
EPLI compensates a business for the cost of defending themselves in court. The policy also helps pay judgments or settlements as issued by a court of law. The policy will also help pay legal fees, no matter if the company loses or wins the case. Keep in mind that EPLI does not cover punitive damages, criminal fines, or civil fines. EPLI also doesn’t cover liability issues covered by other insurance policies.