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 are being reported by employees who believe their rights have been violated. Even the most innocent business owners with sound business practices and personnel policies are vulnerable to claims of intentional and unintentional infractions.

It’s a popular misconception that these lawsuits are covered under Workers’ Compensation Insurance but a separate type of professional liability insurance provides the necessary coverage. The importance of Employment Practices Liability Insurance (EPLI) extends beyond protecting your business’ financial assets in the event that you need to settle a claim or judgment, but it is also critical when one is filed.

What is EPLI?

Full-time, part-time, temporary, and seasonal employees bring cases against business owners during the various phases of the employer/employee relationship: recruitment, hiring, employment, promotions, resignations, and terminations. EPLI covers the expensive legal and investigative fees associated with defending your business against an employment-related lawsuit.

These types of claims can cost business owners hundreds of thousands of dollars — and that does not include payments that may need to be awarded in the event of a loss. Related legal fees vary according to business size, industry, personnel policies and practices, employee turnover rates, legal history, and a company’s risk profile.

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

While EPLI eases the financial burden associated with U.S. employment dispute claims, a trusted insurer will help you find the right coverage for your business. At Doeren Mayhew Insurance Group, we offer EPLI coverage that will provide adequate funds to cover unforeseen fees and damage costs that may be associated with employment practices claims against your business.

Contact us to learn more about the importance of Employment Practices Liability Insurance and additional ways to protect your business today.