Importance of Employment Practices Liability Insurance

With so many cases of sexual harassment and discrimination in the media, it’s not surprising that an increasing amount of businesses have decided to protect themselves by purchasing Employment Practices Liability Insurance (EPLI). EPLI may provide comprehensive coverage to employers against a variety of employment related claims.

What Does EPLI Cover?

EPLI protects your business from claims that arise when employees (current, past or potential) believe that they have been mistreated. EPLI can cover a multitude of workplace related claims, including:

• Discrimination
• Wrongful termination
• Sexual harassment
• Breach of employment contract
• Failure to hire/promote
• Defamation
• Invasion of privacy/confidentiality
• Retaliation

Not Having EPLI Can Cost Your Business

Lawsuits are both costly and stressful. Often times, it can take up to 18-24 months to resolve claim. The average cost to defend a discrimination claim is $125,000 and 25% of judgements exceed $500,000.1. Businesses are wise to carry a limit of $1,000,000 to ensure that they are adequately covered. Most carriers offer many benefits that can help alleviate some of the stress that arises from a claim. For example, sample employee handbooks and an HR forms library, free online support services and support hotline, web-based training on discrimination prevention and expert panels available to advise on claim handling.

EPLI can provide protection and offer much needed peace of mind. As your insurance broker, we can answer your questions about EPLI. Call us today to speak to an experienced agent who can recommend the proper coverage to protect your business.

MPL Risk is an insurance agency working with healthcare organizations. We can provide a complimentary review of your insurance program and obtain quotes, give us a call today at 267-888-4790 or send us a message.

1 “EPLI Insurance: Cost, Coverage and Providers.” Fit Small Business, 20 June 2019, fitsmallbusiness.com/epli-insurance/.

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