Employment Practices Liability Insurance (EPLI)

Protect Your Business with Coverage You Trust

The inception of employment practices liability insurance (EPLI) dates back to the 1990s when the U.S. Senate began delving into the topic of sexual harassment during a confirmation hearing. Within five years following that confirmation hearing, EPLI underwriters began focusing more on EPLI than directors and officers underwriting catapulting the EPLI industry into a competitive market.

EPLI is a business insurance that protects businesses against employee claims that their legal Business Owner’s employment rights were violated by the company. There are two types of EPLI that businesses can obtain: a Business Owners Policy (BOP) or EPLI as a stand-alone coverage.1

DEPENDING ON THE COVERAGE PLAN, EPLI CAN OFFER PROTECTION AGAINST CLAIMS:

  • 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

EPLI policies usually reimburse your company for the costs in defending a lawsuit in court or for judgments and settlements. Winning or losing a lawsuit doesn’t impact your policy coverage of legal costs. However, punitive damages or civil or criminal fines are not typically covered by EPLI. Other liabilities, such as workplace condition claims (i.e., injuries, accidents, fatalities), are covered through other insurance policies like workers’ compensation.

THE COST OF EPLI COVERAGE VARIES DEPENDING ON A FEW FACTORS, SUCH AS:
Type of business
Number of employees
Various risk factors, such as past employment practice lawsuits

The main reason businesses should invest in EPLI coverage is to protect their business from hefty legal expenses that come in defending themselves in a lawsuit brought by an employee. Did you know that startups and small businesses are the most vulnerable to employment practices liability lawsuits? This is because they oftentimes do not have a legal department or an employee handbook outlining policies and procedures on hiring, disciplining, and terminating employees.

Reduce Risk, Build Confidence in Compliance

VensureHR has been serving businesses since 2004 with specialized risk, loss control, workers’ compensation, and EPLI to help reduce potential lawsuits and build confidence in overall business compliance. Our HR experts and Legal Department are equipped with the resources, tools, and expertise to support you in EPLI-related issues. Whether you’re looking for coverage, have a question regarding an EPLI claim, or wanting additional resources, our specialists are able to quickly assist you.