Employment Practices Liability Insurance

Why having Employment Practices Liability Insurance is Important

Employment Practices Liability Insurance (EPLI) protects businesses against claims made by employees alleging wrongful employment acts. This includes claims of workplace discrimination, sexual harassment, unlawful termination, retaliation claims, contract disputes, and denied promotions. In today’s labor law environment, EPLI is a vital component of a company’s risk management strategy.

Coverage typically includes defense costs, settlements, and judgments. It applies whether the company is found liable or not, which is crucial since legal defense costs can be substantial. EPLI policies can also provide access to legal resources, HR best practices, and other tools to help prevent employment-related claims.

This coverage is especially important for small to mid-sized businesses that may not have dedicated HR departments or comprehensive employee training programs. While larger companies may face more public claims, smaller businesses are often more vulnerable due to limited internal resources.