Employment-related lawsuits are on the rise.
According to recent statistics, an estimated three out of five companies can expect to face legal action from an employee.
The average verdict in an employment practices related lawsuit now exceeds $450,000. Such a lawsuit would be financially devastating to most companies. The high risks that companies without liability insurance face, outlines the importance of sufficient coverage.
What is EPLI?
Employment Practices Liability Insurance (EPLI) is an important insurance that is designed to provide specific coverage to companies with employees.
This relatively new coverage provides protection for companies against employment-related claims brought about by employees, and is designed to provide valuable protection for companies against lawsuits related to discrimination, sexual harassment, wrongful termination, and failure to employ.
EPLI is designed to provide coverage in the following areas:
Wrongful Termination Claims
The termination of an employee is an area where many problems can arise, should an employee claim that they were wrongfully terminated. EPLI provides companies with valuable protection against wrongful termination claims.
Discrimination in the workplace and age discrimination are two common types of employment practices related lawsuits. Employees who feel they were discriminated against can bring charges against their company. EPLI policies can provide protection against discrimination claims alleging discrimination against an employee based on race, color, gender, religion, or age.
Other Employment-Related Claims
Other claims can also be brought against a company in various forms such as slander, invasion of privacy, sexual harassment, breach of contract, and negligent hiring. Your policy should outline which employment practice claims are covered by your insurance.
EPLI offers protection valuable indemnification for companies against claims, and lawsuits brought on by employees. If you are a business owner, or have employees, consider protecting yourself and your company against harmful allegations that can bring devastating results.
It's important for companies to make sure they are protected in case of a lawsuit. Don’t put your company at risk, talk with a Texas Energy Insurance specialist today to find out which coverage options you need to help protect your assets, and minimize your risks.