Employment Practices Liability Insurance (EPLI) protects companies and employers against claims brought on by employees, former employees or even potential employees. Such claims could include discrimination (against age, sex, race or disability), wrongful termination, sexual harassment, failure to employ, and other employment related allegations.
Some estimates show that three out of five businesses will face a lawsuit brought on by an employee. With the number of lawsuits on the rise, companies are finding that extra insurance is necessary to cover them from the potentially devastating effects of a financially draining lawsuit.
While businesses in some states are required to have workers compensation, Employment Practices Liability Insurance (EPLI) is less likely to be required, meaning that some companies may not be aware of how important this coverage is.
With cases against employers on the rise, all companies, regardless of size are being encouraged to look into protection against such claims. Companies with employees should talk to their insurance agency to discuss coverage amounts and policy options. Depending on your company’s size, what type of company it is, and level of risk, the cost of this insurance will vary.
No company is exempt when it comes to lawsuits from employees - no matter how excellent the relationship between employee and employer may be. Lawsuits can be brought for any reason. Whether it’s a joke told by an employee while on the premises, or a discrimination lawsuit brought on by someone your company chose not to hire. No matter if the lawsuit is unfounded, the time and resources spent fighting it could be devastating both financially and mentally.
EPLI can help protect your company in the case of lawsuit.
Employment Practices Liability Insurance is recommended for any company that has employees. Check with your insurer to see if your liability insurance covers EPLI, or call Texas Energy insurance for information on a policy.