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Employment Practices Liability

As a business owner you make investments in many aspects of your business, from property to stock to advertising. However, industry studies have shown that the single largest investment a company makes is in their employees.  From recruiting to training, salary to benefits, the cost of each employee is significant.

Employees, and even prospective employees, can cost your company money in other ways.  Sexual harassment allegations, racial discrimination lawsuits and other types of employment related causes of action can cost your business money in claim payouts and attorney fees.

Even the most conscientious of employers can be the victim of a suit, especially in a tough job market.  Employment Practices Liability Insurance (EPLI) is the coverage you need for protection against these claims.

Who Needs Employment Practices Liability Insurance?

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 and hiring process.

What Does EPLI Cover?

EPLI is a very broad form of coverage that protects your business from legal action and lawsuits due to the following:

  • Harassment or discrimination due to age, gender, disability, sexual, religion and others
  • Wrongful termination including downsizing and mass layoffs
  • Breach of employment contract
  • Violation of federal, state, or local civil rights laws
  • Failure to promote
  • Mental anguish
  • Whistleblower retaliation

EPLI claims and lawsuits can be expensive and time-consuming.  Even with little or no indemnity payout to a claim, legal fees for these cases can be in excess of 5 figures, so a 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.


Want to learn more? Call today: (800) 869-8643