Employment Practices Liability Insurance
Employment Practices Liability Insurance covers employment-related claims and provides an employer with protection against claims made by former employees, present, or even potential employees. Even if the claim against the employer is groundless, the defense of a lawsuit can be quite expensive.
Need for Employment Practices Liability Insurance
As soon as you start hiring employees, the need for this type of insurance begins. In fact, some directors and investors might also require you to carry this coverage as part of the Directors and Officers Insurance.
Employment Practices Liability insurance covers
- workplace discrimination of any kind
- workplace harassment
- wrongful termination
- employment-related slander or libel
- emotional distress
- possibly reputation or defamation claims
- any other employment-related allegations
EPLI policies do not cover:
- Fair Labor Standards Act Violations
- Occupational Safety and Health Act Violations
- State Employment Law Violations
- Punitive Damages
- Intentional Institutional Claims
- Violation of Employee Retirement Income Security Act
- Violation of Consolidated Omnibus Budget Reconciliation Act
- Some Americans With Disabilities Act Claims
Employment Practices Liability insurance coverage must be tailored to meet the unique requirements and conditions of the state where the business has operations. Additional endorsements may be needed to cover operations in states having strong employee protection laws.