Coverages > Employment Practices Liability Insurance (EPLI)

Employment Practices Liability Insurance (EPLI)

What is Employment Practices Liability Insurance (EPLI)?

Employment Practices Liability Insurance (EPLI) protects your business from claims related to employment-related issues such as wrongful termination, discrimination, harassment, and retaliation. This insurance covers legal fees, settlements, and court judgments that may arise from these claims.

What Does Employment Practices Liability Insurance Cover?

EPLI typically includes the following coverages:

  • Wrongful Termination: Covers claims that an employee was wrongfully terminated from their position.
  • Discrimination: Provides coverage for claims of discrimination based on race, gender, age, religion, or other protected characteristics.
  • Harassment: Covers claims of workplace harassment, including sexual harassment and hostile work environment claims.
  • Retaliation: Provides coverage if an employee claims retaliation after reporting misconduct or exercising their rights.

Who Needs Employment Practices Liability Insurance?

Any business with employees should consider EPLI to protect against the financial impact of employment-related lawsuits. This coverage is especially important for businesses with a large workforce or those in industries with higher risks of employment disputes.

Frequently Asked Questions

EPLI policies typically cover claims made by full-time and part-time employees. Coverage for independent contractors may vary, so it's important to check your specific policy.

Implementing strong HR practices, providing employee training, and maintaining clear policies on discrimination and harassment can help reduce the risk of EPLI claims.

EPLI is not required by law, but it is recommended for businesses that want to protect themselves from the potential financial impact of employment-related lawsuits.

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