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Employment Practices Liability Insurance

Employment Practices Liability Insurance

Frequently Asked Questions

Employees are typically the single largest expense to a business year after year. Salary, benefits, and training all contribute to the cost per employee.

Employees and potential employees can cost your business in other ways. Harassment lawsuits, racial or sexual discrimination and other employment-related causes of action can cost your business money in legal fees and claims payouts.

The best way to protect your business is to purchase Employment Practices Liability Insurance (EPLI).

Here are some frequently asked questions about this coverage:

Isn’t EPLI included in my Commercial General Liability (CGL) insurance policy?

This coverage is NOT usually included in your CGL policy. It would need to be added as part of a package policy or purchased as a stand-alone coverage. If you are unsure, check your policy and then talk to your broker.

What does EPLI cover?

EPLI policies are tailored to fit your business and may include coverage for harassment, discrimination, wrongful termination, breach of contract, failure to employ, failure to promote, violation of civil rights laws and more. See our document titled “SUMMARY OF EPLI (EMPLOYMENT PRACTICES LIABILITY INS.) RISKS” for a more comprehensive list.

Does my business need EPLI?

Any company that has employees or plans to hire employees needs EPLI coverage. Even if you only employ family members, or you haven’t hired your first employee yet, you should have this coverage in place. Allegations of misconduct or discrimination can come from anyone at any time, even during the interview or hiring process.

EPLI claims and lawsuits can be expensive and time-consuming. Even with little or no indemnity payout to a claim, legal fees in these cases can become excessive. Your business could be easily bankrupted just paying an attorney to handle a nuisance suit.

The above is not, by any means, an exhaustive list of what EPLI covers. Your Hayes Broker can provide a comprehensive list of coverage and claims examples, and tell you more about how this valuable coverage can protect your business.

Click here to find out more.

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