What Is Employment Practices Liability Insurance Coverage?
EPLI is insurance that gives companies coverage against employment-related lawsuits such as claims of harassment, wrongful termination, discrimination or other work-related issues. Such lawsuits are increasingly common in today’s business environment. The most common claims filed are for retaliation, sexual harassment, discrimination and wrongful termination.
Many large corporations are well protected and can deal with nearly any type of employment-related lawsuit. Unfortunately, new or small businesses can be highly vulnerable to this type of claim. Many of these businesses lack an employee handbook or a legal department that can advise on proper procedures to follow regarding terminating, disciplining and hiring employees.
If you need help with a handbook and other HR matters, click here!
What Does EPLI Cover?
Retaliation: Taking a negative action toward a person in response to a protected action or a decision they’ve made. Example – if an employee is terminated for telling a government agency about illegal activity at your company.
Sexual Harassment: Workplace sexual harassment is defined as “unwelcome sexual advances, requests for sexual favors, and other verbal or physical conduct of a sexual nature.” Example – a joking comment that is sexually descriptive in nature with an employee.
Discrimination: Making improper or illegal decisions regarding a person’s compensation, promotion or hiring. Example – if an unqualified job applicant is hired because they’re the boss’ daughter.
Wrongful Termination: Giving a person an inaccurate, unfairly low or excessively negative performance evaluation. Example – if you make up a false incident report about an employee on a review.
Wage and Hour Claims: URGENT – Coverage for wage and hour claims is not included by most policies. Please contact our business insurance team for more details.
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Do I Need This Coverage?
Employment Practices Liability Insurance comes in handy if your business:
- Hires, promotes, demotes or fires employees or contractors
- Evaluates employees or contractors
- Offers raises to employees or contractors
- Supervises employees or contractors
- Monitors the communications of employees or contractors
- Communicates to or about employees or contractors
- Your industry is an environment where possible employee or contractor harassment could occur
- Manages benefits for employees or contractors
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PS Here’s a few words from one client that trusts Stromsoe Insurance Agency:
“I have dealt with Stromsoe Ins for 13 years. They have been outstanding in customer service and finding me the best policies for my needs. I regret having to say good-bye as I say hello to retirement.”
Robert Siever – Gasket Pro – Costa Mesa, CA – Client Since 2014
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