Is Employment Practices Liability Insurance Right for My Business?

When setting up your business model, it’s important to ensure you have adequate liability coverage for unforeseen events. Unhappy clients and customers can file claims stemming from several issues, including negligence, errors and omissions. Business owners must also be aware that disgruntled employees can also sue the company.

What is Employment Practices Liability Insurance?

EPLI insurance protects your company from unwanted employee claims. In this age of easy lawsuits, you may find yourself paying expensive legal fees even if you’ve done nothing wrong. EPLI coverage helps to pay your lawyer’s bills and any settlement costs.

What Situations Will EPLI Cover?

Your EPLI plan pays the expenses for many situations in which employees can sue the company.

  • Wrongful Termination – If an employee feels they have been terminated for unlawful reasons, they may seek litigation.
  • Discrimination – An employer is not permitted to discriminate against an employee based on their age, race, sex or disability.
  • Harassment – Most lawsuits are filed for unwanted sexual advances, but they can include any behavior that makes an employee uncomfortable.
  • Failure to Promote – If an employee is overlooked for a deserved promotion, they could seek legal counsel.

You hope you’ll never have to use it, but it’s wise to protect your company from unwanted employee claims with employment practices liability insurance.