Employment Practices Liability Insurance or “EPLI” covers businesses for claims brought by employees, alleging that their legal rights as employees of the company have been violated.
The number of Employment Practices Liability lawsuits filed against their employers is on the rise. In truth, many EPLI lawsuits are filed against large corporations, but no company is immune to this kind of litigation. Insurance companies now understand that smaller businesses also have a need EPLI protection. Some insurers provide EPLI coverage as an endorsement to their Businessowners Policy or Package Policy. Other companies may offer EPLI protection under a stand-alone policy.
EPLI provides protection against many kinds of employee lawsuits, including but not limited to, claims of:
- Sexual harassment
- Discrimination due to age, race, religion or sexual orientation
- Wrongful employee termination
- Breach of contract of employment
- Failure to promote
- Deprivation of career opportunity
- Wrongful infliction of emotional trauma or distress
- Employee benefit plan mismanagement
The cost of EPLI coverage depends on your type of business, the number of persons employed, the coverage limit and deductible you select and other factors such as whether your company has been sued for employment practices in the past. The policies will reimburse your company for the costs of defending a lawsuit in court and also for judgments and settlements that the court may award. The policy covers legal costs, whether your company wins or loses the suit. Punitive damages, civil fines or criminal fines are usually excluded. Liabilities covered by other insurance policies such as workers compensation will be excluded from coverage under EPLI policies.
If you are interested in adding this valuable coverage to your insurance protection plan, please give CNR a call and we will be happy to discuss it with you.