What Business Owners Should Know About EPLI

Learn more about employment practices liability insurance (EPLI).

While you have coverage to protect your business against third-party lawsuits and claims, do you have protection against employee claims?  If you assume that your workers compensation insurance will cover the cost of employee-filed lawsuits, then you might be in for a rude awakening.  Workers comp coverage only covers the costs of lawsuits filed by employees that are injured on the job.  So, what can you do to protect your company against other types of employee lawsuits?  This is where EPLI coverage comes in.

What is EPLI?

In general terms, EPLI is insurance that is designed to protect your business against employee claims of unfair treatment.  EPLI provides coverage for many types of employee-filed lawsuits, such as those related to:

  • Sexual harassment
  • Discrimination
  • Wrongful termination
  • Breach of employment contract
  • Negligent evaluation
  • Failure to employ or promote
  • Wrongful discipline
  • Deprivation of career opportunity
  • Wrongful infliction of emotional distress
  • Mismanagement of employee benefit plans

Do I really need this coverage?

Many business owners forgo EPLI coverage because they believe that their employees would never sue them.  While you may treat your employees fairly and have never had an EPLI claim in the past, you never know what the future holds.  In some cases, a single misinterpreted statement or a poorly worded question can be enough for an employee to file a claim.  Because EPLI-related lawsuits are excluded from coverage under your other liability insurance policies, you would be left covering the cost of the lawsuit all on your own.  Even if you were to win the suit, the cost of your legal defense could easily exceed hundreds of thousands of dollars.  The only way to ensure that this substantial cost does not come out of your business’s savings is by securing EPLI coverage.

This is what EPLI can do for your company.  Want another way to take care of your business?  Then make sure you have the right business insurance protection at the best price by giving our knowledgeable Total Protection Team a call at 951-600-5751, sending an email to insure@siaonline.com, or stopping by our Murrieta, California office today.  We are always happy to help!