Employment Practice Liability Insurance

Understanding Employment Practices Liability Insurance

Employment Practices Liability Insurance (EPLI) is a type of coverage designed to protect employers from claims made by employees alleging a variety of employment-related issues such as discrimination, wrongful termination, and harassment. EPLI is crucial for businesses of all sizes due to the potential for employment-related claims, offering necessary risk management. This insurance covers legal defense costs and any settlements or judgments that may result from employment-related lawsuits.

What does Employment Practices Liability Insurance Covers?

EPLI policies typically cover a broad range of employment-related claims. These can include sexual harassment, discrimination (based on age, sex, disability, race, color, nationality, religion, or pregnancy), wrongful termination, demotion or denial of promotion, retaliation, breach of employment contract, negligent evaluation, failure to employ or promote, wrongful discipline, deprivation of career opportunity, wrongful infliction of emotional distress, and mismanagement of employee benefit plans. The breadth of coverage can provide a significant layer of financial protection for businesses.

Find the best Liability Insurance for you

While EPLI coverage is extensive, it’s important for businesses to understand its limitations. For instance, EPLI does not typically cover claims under the Occupational Safety and Health Act, Fair Labor Standards Act, or the National Labor Relations Act. It also doesn’t cover statutory penalties, punitive damages, or claims of bodily injury or property damage.

Therefore, when considering EPLI, businesses need to assess their unique risks and ensure that their chosen policy provides adequate coverage for the issues they are most likely to face. Ready to get started? Contact The Kind Insurance for a quote today.