Employment Practices Liability Insurance

Employment practices liability insurance (EPLI) is becoming increasingly common among businesses. EPLI simply covers businesses if employees file a claim that their rights as employees of the company have been violated. As time has passed, these types of lawsuits have increased greatly.

Are You At Risk?

Although the majority of these EPLI lawsuits are filed against large corporations, all companies are at risk. Sometimes this can be added as an endorsement to a normal business owner’s policy (BOP). An endorsement changes some of the terms of the policy, so many companies choose to purchase the policy separately.

What Does EPLI Cover?

Employment practices liability insurance covers a variety of different claims. One of the most important in this day and age is the sexual harassment. It seems that every day we hear about yet another company being slapped with a sexual harassment suit; having EPLI can help protect you against the devastating financial effects caused by these types of lawsuits. EPLI also covers discrimination suits filed against a company. Examples of other types of claims is wrongful termination, breach of employment contract, negligent evaluation, failure to employ, failure to promote, wrongful discipline, deprivation of career opportunity. wrongful infliction of emotional distress, and mismanagement of employee benefit plans. All of these claims are far more common than the average business owner believes.

How To Avoid EPLI Claims

EPLI claims can cost a fortune and increase the price of your insurance coverage. Training should be available for your entire management team so that everyone will know what actions are acceptable. Many suits are filed against people who did not realize that they had done anything wrong. Business policies, including information on conflict resolution strategies, should be included in manuals that are available to all employees.

Additionally, employees should be made to feel that they are an important part of the team; thus, reducing the likelihood that they will experience emotional distress or feel unfairly attacked while working at your establishment. Some people become unhappy and create imaginary problems based on actual situations due to their unhappiness at your company; these types of problems may eventually be created into a lawsuit.

info@businessinsurancefinders.com