Skip to main content

Employment Practices Liability (EPLI)

What is employment practices liability insurance (EPLI)?

EPLI covers businesses against claims by workers that their legal rights as employees of the company have been violated.
 
The number of lawsuits filed by employees against their employers has been rising. While most suits are filed against large corporations, no company is immune to such lawsuits. Recognizing that smaller companies now need this kind of protection, some insurers provide this coverage as an endorsement to their Businessowners Policy (BOP). An endorsement changes the terms and conditions of the policy. Other companies offer EPLI as a stand-alone coverage. 
 
EPLI provides protection against many kinds of employee lawsuits, including claims of:
  • Sexual harassment
  • Discrimination
  • Wrongful termination
  • Breach of employment contract
  • Negligent evaluation
  • Failure to employ or promote
  • Wrongful discipline
  • Deprivation of career opportunity
  • Wrongful infliction of emotional distress
  • Mismanagement of employee benefit plans
The cost of EPLI coverage depends on your type of business, the number of employees you have and various risk factors such as whether your company has been sued over employment practices in the past. The policies will reimburse your company against the costs of defending a lawsuit in court and for judgments and settlements. The policy covers legal costs, whether your company wins or loses the suit. Policies also typically do not pay for punitive damages or civil or criminal fines. Liabilities covered by other insurance policies such as workers compensation are excluded from EPLI policies. 
 
To prevent employee lawsuits, educate your managers and employees so that you minimize problems in the first place:
  • Create effective hiring and screening programs to avoid discrimination in hiring.
  • Post corporate policies throughout the workplace and place them in employee handbooks so policies are clear to everyone.
  • Show employees what steps to take if they are the object of sexual harassment or discrimination by a supervisor. Make sure supervisors know where the company stands on what behaviors are not permissible.
  • Document everything that occurs and the steps your company is taking to prevent and solve employee disputes.

Contact us today to learn how we can help with your business insurance needs. 

 




With Permission Insurance Information Institute, Inc.  ALL RIGHTS RESERVED 

Quick Quote Request 

 
Send To Agent
What Our Customers Are Saying... 

“It's like this working with Hadley: Professional, precise, patient, purposeful, pretty much perfect!
In the short time we have worked together, she has excelled with every single one of my clients, and brought them ALL such peace of mind.
She IS the call I make. Thank you, Hadley!”  
-Sara N

“When I first approached Hadley to get business insurance I was, honestly, a little scared. She helped make me feel better about it and helped me understand what I needed and why I needed it. My favorite part was when she told me what I didn't need. This told me that she really IS looking out for my best interest and that it was about her integrity and not about her making money. Although she wants to make money, it wasn't going to be at my expense due to my lack of knowledge and my ignorance about business insurance products. I trust her with all of my insurance needs.”
-Lynda W

“I am so happy that I was introduced to Hadley regarding insurance for my technology business. She is so knowledgeable, listened intently to my needs, and provided such a fitting product that was loads better protection vs. what I was receiving from a different insurance provider. Thank you Hadley for giving me the peace of mind that my business is as well protected as possible!”
-Patty L

“I have been working with H. Linwood for over 6 years now and they have continuously saved my company thousands of dollars in insurance premiums. I was able to take that savings and increase my marketing and now my company is doing better than ever.  I am so thankful that you are on my ‘team’ of support.” 
-Melonie T

“I was referred to H. Linwood a few years ago when I started my business.  They helped me understand what my company needed to protect itself and explained the process to me.  They made the whole experience painless, easy and affordable.  I now refer them to all of my business associates and they have thanked me!” 
-Brad B

“I am in construction and need certificates immediately.  I love that I can make one call and have what I need – sometimes within minutes. Thanks for the great customer service!” 
-Scott M