What is Employment Practices Liability Insurance?
Employment Practices Liability Insurance (EPLI) is a type of liability insurance that provides an employer coverage for legal defense costs should a lawsuit be brought against the company for a wrongful act in the employment process.
While different carriers may manuscript their own forms, all General Liability policies include a version of ISO’s standard Employment-Related Practices Exclusion, which states: “This insurance does not apply to: Employment-related practices, policies, acts or omissions, such as coercion, demotion, evaluation, reassignment, discipline, defamation, harassment, humiliation, discrimination or malicious prosecution directed at that person”.
Why Should Insureds Buy Employment Practices Liability Insurance?
With the business world becoming more and more diverse by the day, it is important to remember that perception is someone else’s reality. Here are 10 reasons why Business Owners should purchase Employment Practices Liability Insurance (EPLI):
Who Needs EPLI Coverage?
No employer plans to have to defend their employment practices in a courtroom when they start a business. We all think: “this won’t happen to me, I’ve got it all figured out. Why would I need this coverage?” However, coming up with a risk management program is all about planning for the unexpected and for situations that could land your company in some trouble. Simply put – any business with employees is at risk for an employment practices suit. All it takes is one angry or dissatisfied employee, one applicant, or one mishandled incident that is reported to the EEOC or Department of Labor to land your business in that dreaded courtroom.
At Brown & Brown, we are experts in this line of coverage, and we would love to work with you to help better protect your business.
Tyler LeRoy, CLCS