Employment Practices Liability Insurance (EPLI) is designed to offer protection for companies from lawsuits that are brought on by employees. EPLI offers liability protection from employment related allegations such as discrimination, sexual harassment, and wrongful termination.
EPLI is important for any company that has employees, unfortunately though, many employers are not aware of the importance of EPLI. Often, employers assume that workers compensation provides enough coverage. However, EPLI picks up where workers compensation leaves off. While workers compensation provides for an employee in case of an injury or accident, EPLI provides coverage for the company or employer, as a safeguard against employment related lawsuits.
Prevalence of Lawsuits
Recent studies show that three out of five companies will face a lawsuit from an employee. Many blame the economy for the recent rise in claims against employers, saying that workers who were let go might not have been able to find compatible work, and are now seeking compensation from their former employers. Others say that the 2008 Equal Employment Opportunity Commission has made it easier for employees to file lawsuits against their employers. Whatever the reason, there is importance for extra insurance as a safeguard against lawsuits.
EPLI Provides Valuable Protection
EPLI is also an important coverage due to the expenses of legal battles. In case of an employment related lawsuit, EPLI can pay for your court costs, as well as your defense costs, and judgments.
While many employers assume that EPLI is expensive, it may not be as expensive you think – and costs much less than an expensive legal battle.
If your company has employees, it is important to ensure that your insurance policy provides comprehensive coverage in case of a lawsuit.
Since EPLI policies vary, it is important to talk with your agent to confirm that you have enough coverage.
Employment practices liability insurance has never been more important. Don’t wait until it’s too late to look into getting coverage, talk with your insurance agent today.