What is Employment Practices Liability Insurance (EPLI) ?
Companies need protection against employment-related claims such as sexual harassment, workplace discrimination, and breach of contract. EPLI coverage shields companies from compensatory damages and controls legal and loss costs. This is particularly important for small to medium-sized companies who may not be able to recover from lengthy and costly litigation.
EPLI policy coverage can include:
Discrimination based on race, color, religion, national origin, age, or sex
Discrimination due to pregnancy
Discrimination of individuals with disabilities or life-threatening illnesses
Failure to employ or promote
Wrongful deprivation of career opportunity
Breach of oral and written employment contracts
Creation of a hostile work environment
Why it’s smart to have Employment Practices Liability Insurance
An executive of a manufacturing company files suit against the company for wrongful termination and intentional infliction of emotional distress. The plaintiff, a former Chief Operating Officer, makes statements that the company improperly failed to pay an employee overtime and terminated the employee for filing a complaint. The plaintiff alleges that although the company advised him that his termination was due to performance problems, he was actually terminated in retaliation for his honest statements he made in connection with a fellow employee’s termination. Total defense costs and settlement exceeded $750,000.