Running a business comes with many responsibilities, particularly when it comes to managing employees. Employment Practices Liability Insurance (EPLI) is designed to protect your business from claims related to employment practices, helping safeguard your organization’s finances, reputation, and leadership.
Even the most well-intentioned employers can face lawsuits or claims from current, former, or prospective employees. EPLI provides protection against the high costs of defending against employment-related claims and paying awards or settlements if a judgment is rendered against your business.
Why Employment Practices Liability Insurance is Essential
Employment laws exist to ensure fair treatment of employees and job applicants. These laws protect individuals from a wide range of unlawful employment practices, including:
- Wrongful termination or dismissal
- Sexual harassment
- Discrimination based on gender, race, religion, age, disability, sexual orientation, or marital status
- Wage and hour violations
- Breach of employment contract
- Invasion of privacy
- Creating a hostile work environment
Even if claims against your business are unfounded or ultimately dismissed, defending against lawsuits can be extremely costly. EPLI coverage helps cover legal defense costs, settlements, and court judgments, giving business owners the confidence to operate without the fear of financially devastating claims.
Who Needs Employment Practices Liability Insurance
- Small, medium, and large businesses with employees
- Human resources departments seeking protection for employment decisions
- Businesses in industries with higher employee interaction and turnover
- Nonprofits and organizations with boards and staff
- Startups and growing businesses looking to mitigate employment risks
Any organization with employees, contractors, or interns can benefit from EPLI coverage, as workplace claims can occur in any industry, from retail and hospitality to healthcare and professional services.
