Employment Practices Liability Insurance, also known as EPLI or EPL Insurance, protects your business from a broad range of allegations including discrimination, harassment, wrongful termination, hours and wages, and illegal alien investigations. Defending against these types of allegations can be expensive and time consuming.
Employment Practices Liability Coverage Features
- Employment practices liability protection for claims made by current, former and prospective employees
- Protection extending to the company, employees and directors
- Coverage for full-time, part-time, leased, seasonal and temporary employees
- Covered claims include regulatory proceedings such as Equal Employment Opportunity Commission (EEOC) charges
- Covers losses including damages and defense costs
- Full prior acts coverage
EPLI Optional Coverage May Include
- Coverage for employee related Social Media Lawsuits including defamation, invasion of privacy and workplace bullying
- Wage and hour costs defense coverage
- Illegal alien investigation proceeding cost of defense coverage
- Third party liability coverage
The Risk Is Real
The average cost of an EEOC lawsuit in 2010 exceeded $270,000.
Many businesses consider doing without Employment Practices Liability insurance to save money. The fact is that most businesses can’t afford the consequences of an employment-related lawsuit and general liability policies often have a standard exclusion for EPL.
Here is one example of an Employment Practice Liability claim:
An assistant estimator previously employed by the insured, a general contractor, filed a charge of discrimination with the EEOC alleging pregnancy discrimination. According to the claim, the former employee alleged she had advised her supervisor she was pregnant. She was terminated shortly thereafter for poor attitude and for not completing her work. The claimant also alleged she had been terminated just before annual bonuses were distributed. The defense counsel assigned by Monitor Liability Managers, LLC obtained a “no probable cause” finding. The defense costs exceeded $30,000.
Protect the Profitability of Your Company
Contact us to learn more about Employment Practice Liability insurance and find out what level of coverage is right for your business.