What is Employment Practices Liability Insurance?

What is Employment Practices Liability Insurance?

Employment Practices Liability Insurance (EPLI) coverage provides protection for a company’s liability resulting from sexual harassment, wrongful termination, and discrimination against employees. In addition, EPLI is not just for employees, it provides protection against discrimination and harassment claims made by former employees, potential employees, customers, and guests. These claims scenarios are specifically excluded in a general liability policy, which is why all businesses with employees and/or customers should carry EPLI coverage.

Workplace discrimination claims are at an all time high. In today’s sour economy, small business owners need to control expenses, but Employment Practices Liability Insurance is not the place to cut corners. The US Equal Employment Opportunity Commission (EEOC) reported that discrimination claims soared 15% in 2008 and workers were awarded $376 Million.

• 6 out of 10 employers have faced employee lawsuits within the last five years – That’s 60%!
• Businesses are more likely to suffer a financial loss from an employment practices related claim than from a fire.

Defense costs – most small businesses do not have the financial resources to retain legal counsel, let alone pay for a costly defense. Average defense cost for an employment practices lawsuit is $45,000. The average settlement is $40,000. Do you have $85,000 cash on hand right now?

Okay, so how much? – EPLI policies can be as low as $100/month for small businesses with decent HR practices.

The bottom line: If you’re reading this, I can almost guarantee that you know someone who has had an employment practices related incident with their business. In fact, you may have experienced an employment practices situation first hand – if you have, you’re in the majority. If you haven’t, avoid the mindset of “it will never happen to me.”

Coverages available or included in EPLI policies:
• Sexual harassment
• Wrongful Termination
• Discrimination
• Statute Violation
• Negligent Hiring
• Negligent Supervision • Negligent Promotion
• Negligent Retention
• Disabilities
• Breach of Contract
• Loss of Consortium
• Emotional Distress • Invasion of Privacy
• Wage and Hour Disputes
• Drug Testing
• Mental Anguish
• Libel
• Slander

If you would like a quote for Employment Practices Liability Insurance just click here

Have a great day

Rex Lesueur

Bancorp Insurance





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