Employment practices liability insurance (EPLI) plays an important role in all types of businesses: serving as a financial safeguard against unexpected workplace exposures. Do you have this critical kind of insurance and in the right amount?
Like virtually all employers, you likely want to do the right thing by your employees: keep them safe, happy and fairly compensated. But however hard you try, employment practices claims can arise, and they can be lodged against a business, its officers, owners, employees and/or managers.
What kinds of claims? Well, under federal law as well as some state and local laws, claims may be made regarding harassment (sexual or otherwise), wrongful termination, hostile work environment, or age, sexual or gender discrimination. But that’s not an exhaustive list.
Sometimes these claims are merited; sometimes they are not. Regardless, defending against them can be a costly proposition, with legal fees alone running tens of thousands of dollars. Then there are any awards to consider if you lose or feel forced to settle.
That’s where ELPI can be critical. After your deductible is met, ELPI covers the cost of your legal defense, along with the costs of judgments and settlements, up to your coverage limit. EPLI typically offers $1 million to $25 million in coverage (but not for criminal conduct; this is civil).
The best way to mitigate employment practices risks is to have solid insurance coverage. Give us a call today to see how we can support you in finding the best policy!