Employment Practices Liability Insurance (EPLI)

Businesses must be protected in the event of an employment dispute claim by a former or current employee. Allegations of workplace discrimination, privacy invasion, and other intentional and unintentional infractions on the part of the business are often assumed to be covered under a standard General Liability or Worker’s Compensation insurance policy. However, this type of coverage is actually provided by a separate type of insurance policy that is known as Employment Practices Liability Insurance (EPLI).

EPLI insurance covers costly fees associated with defending your business against employment-related claims during the different phases of the employer/employee relationship. These include the job search, recruitment, hiring process, onboarding, employment, promotions, resignations, and terminations. Owners, directors, and other officers of the business are liable for allegations brought forth by full-time, part-time, temporary, and seasonal members of the workforce.

Common Allegations Include:

  • Sexual harassment
  • Privacy invasion
  • Defamation
  • Retaliation
  • Mismanagement of benefits
  • Wrongful termination, discipline, or demotion
  • Negligence related to hiring, promotions, or compensation
  • Discrimination based on age, gender, race, religion, or other protected class

Companies that defend themselves against employment-related claims can experience an average financial burden of nearly $150,000. That’s one reason why it’s important to secure an EPLI policy to provide adequate coverage for fees and damage costs associated with potential claims.

Request a Quote

Working with a trusted insurance agency to find the right coverage will ensure your business is protected in the event of a claim. At Doeren Mayhew Insurance Group, we provide customized solutions to meet your unique insurance needs. Call us at (248) 290-0650 or contact us to request a quote.

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The Importance of Employment Practices Liability Insurance (EPLI)

There has been a rise in U.S. employment dispute claims against businesses of varying sizes and across industries in recent years. Allegations of everything from workplace discrimination and privacy invasion to defamation and retaliation…

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