How Do I Get EPLI Insurance?
EPLI, also known as Employment Practices Liability Insurance, is designed to help businesses protect themselves against losses related to employee rights claims. It provides employment practices liability coverage for claims alleging violations of employee rights, including:
EPLI provides a reassuring blanket of protection against a wide array of employee lawsuits. Its importance lies in its ability to cover the legal defense costs, effectively safeguarding the business from potentially crippling legal fees related to employee conflicts.
To make the most of EPLI, it’s essential to ensure the policy is active both when the incident occurred and when the claim is filed.
The Role of EPLI in Protecting Your Business
Think of EPLI as a financial shield for your business, one that is designed to mitigate the negative impact of employee lawsuits by covering legal costs and settlements. EPLI protects against claims that could severely affect a company’s operations and finances, such as:
negligent evaluation
wrongful discipline
sexual harassment
discrimination
wrongful termination
By providing this coverage, EPLI plays a crucial role in business survival.
Take, for example, the substantial economic costs associated with workplace harassment; these can have significant repercussions on productivity, victim and employer finances, and overall wellbeing. EPLI acts as a buffer, helping address these costs and preserving the operational integrity of the business.
Key Differences Between EPLI and Other Insurance Policies
EPLI stands out from other insurance policies due to its focus on employment-related claims. General liability policies, for example, typically address physical injury and property damage claims, not issues like wrongful termination or discrimination. Similarly, Professional Liability Insurance, or E&O, handles negligence related to a business’s professional services, not employment-related negligence claims.
EPLI also differs from workers’ compensation, a legally mandated insurance that covers employee work injuries. The unique value of EPLI lies in its comprehensive coverage of employment-related issues, protecting the business from potential employee lawsuits that fall outside the scope of other insurance policies.
