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Employment Practice Liability Insurance

Employee litigation against employers is on the rise. Some studies show that companies are more likely to have employment related claims made against them than general liability claims. The claims aren’t limited to just employees: former employees, prospective employees, and family members of employees can all bring claims against a company.

When a company is accused of harassment or discrimination, the results can be devastating. Oftentimes, the payouts required to cases that are won in court total upwards of $100,000.

Read on to see how employment practice liability insurance (EPLI) can help protect your company from lawsuits.

What is ELPI?
ELPI covers a company in case of a lawsuit brought on by an employee, former employee, family of an employee, or even a potential employee. In one sense, EPLI helps to connect workers’ compensation and general liability insurance. It serves to fill in the gaps left between the two policies. EPLI and workers comp are usually part of the same policy.

Wrongful Termination/Discrimination Lawsuits
Discrimination lawsuits are prevalent these days. Employees, customers, and even job applicants can bring a discrimination lawsuit against a company. If a job applicant didn’t get the job, and they felt that the reason they weren’t hired was because they were discriminated against, and they could potentially bring a discrimination lawsuit against the company. An ELPI policy protects you and your business against lawsuits over discrimination or wrongful termination accusations.    

Other Lawsuits
EPLI provides protection for your business against a current or former employee, and even the employee’s family members who might bring a lawsuit against the company. These lawsuits could be due to a work related accident cause by company neglect, as well as harassment or bullying, in addition to wrongful discrimination or termination lawsuits. 

EPLI Offers Valuable Additional Coverage Benefits
In case of an employee lawsuit, EPLI coverage can pay for your defense expenses, as well as judgments and settlement costs -even if your company doesn’t win. This extensive coverage makes EPLI an especially invaluable insurance coverage to have.

If you have employees, it is important to talk with your insurance agent to find out if your company is covered. Each policy is different, so make sure you understand the terms and conditions, as well as the level of coverage that your policy provides.