What is Employee Practice Liability Insurance?
The Insurance Information Institute defines Employee Practice Liability Insurance (EPLI) as a policy that “covers businesses against claims by workers that their legal rights as employees of the company have been violated.”
We work in an increasingly litigious society. Lawsuits aren’t just for large corporations. The number of lawsuits filed by employees against their employers is rising and the fallout can be costly and drag out for years to come.
A recent study on workplace harassment and discrimination found that it is costing employers a significant amount of money and time. Sexual harassment is the most common type of workplace complaint. During the past year, discrimination and harassment complaints have cost employers more than $356 million in lawsuit settlement payments.
EPLI can cover your company from a number of risks. Among them, sexual harassment, discrimination, wrongful termination, breach of employment contract, wrongful discipline, or wrongful infliction of emotional distress, or mismanagement of employee benefit plans, among other things.
To prevent employee lawsuits, it is essential to educate employees and managers so you minimize problems in the first place. Make sure you have a detailed, thorough corporate policy that it is distributed to everyone in the workplace. Implement a hiring program to avoid discrimination in hiring. And if an incident does occur, make sure to document everything to help your company prevent and solve employee disputes without costly end results.
But, while all these steps can help prevent lawsuits, EPLI remains a growing necessity for business owners. The cost of EPLI depends on several factors, such as your type of business, the number of employees, and your company’s track record.
Today, whether it’s a large corporation or a small business owner, Employment Practices Liability Insurance (EPLI) should be part of your comprehensive insurance program. This policy provides coverage for legal fees, settlements and damage awards that result from employee claims of misconduct against a company’s employees and managers. PLRisk Advisors offers a competitive EPLI product for your clients in all classes of business. Contact us today for more information (855) 403-5982