Employment Practices Liability Insurance (EPLI) is a coverage designed to protect the insured against the risks associated with running a business. EPLI policies cover a range of risks such as wrongful termination, sexual harassment, contract violations, and wage and hour law violations. In a world where courts tend to favor the employee, whether they are right or wrong, an EPL policy can be the difference between keeping a business open or not.
Employee discharge is a big risk for an employer. While an employer has the right to hire and fire their employees, an employee can threaten to sue for wrongful termination. Even if the employer is innocent. The legal fees to prove it can add up quickly so the easiest way is to settle the suit. Your company doesn’t have to do anything wrong to be sued, but you will still have to pay for legal defense. Many non-buyers mistakenly believe that their General Liability policy will cover EPL-related events, but they will need the complete Employment Practices Liability coverage for full protection.
EPLI is insurance for wrongful termination, sexual harassment, discrimination, invasion of privacy, false imprisonment, breach of contract, emotional distress, and wage and hour law violations.