What is Employment Practices Liability Insurance?
Employment Practices Liability Insurance (EPLI) provides protection for an employer against claims made by current staff, former workers, or potential employees. It covers discrimination, for instance, age or race, wrongful termination of employment, sexual harassment, and other allegations that pertain to the hiring and firing of employees.
EPLI policies will usually be bundled with Directors' and Officers' Liability (D&O). This would protect the entity against claims where individuals or groups are affected by a director's wrongful action.
What is included in an EPLI?
Fiduciary Liability is sometimes also included with the EPLI, as is Wage & Hour if the policy includes those endorsements. Some policies will even allow the insured the Choice of Counsel, should a claim arise.
EPLI policies are often endorsed to include Third Party Liability Coverage. This would secure the business against legal conflicts that flare up between employees and third parties, such as vendors or customers.
What is the cost?
The cost of D&O/EPLI Policies are determined by the size of a company (sales), number of employees, type of industry, claims history, hiring and firing procedures and employee turnover rates.
Do I need EPLI?
Many people think that the liability policy they carry will cover such claims, only to find out too late that they are mistaken. Do not be in that category! Please call us today for a free D&O/EPLI quote.
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