What is Employment Practice Liability Insurance?

What is Employment Practice Liability Insurance?

Employment Practice Liability insurance covers businesses from legal action from their employees when they believe their rights have been violated.

The number of lawsuits filed by employees against their own employers has been increasing in recent years. While most of these claims are filed against large corporations, employees will not care what size your company is if they find their rights to have been violated. Smaller companies now need this type of protection, and the more you know about Employment Practice Liability Insurance (EPLI), the better you’ll be if any of your employees decide to file such lawsuit against you.

EPLI provides protection against the following kinds of claims:

  • Mismanagement of employee benefit plans
  • Negligent evaluation
  • Wrongful termination
  • Sexual harassment
  • Breach of employment contract
  • Wrongful infliction of emotional distress
  • Failure to employ or promote
  • Discrimination
  • Wrongful discipline
  • Deprivation of career opportunity

EPLI cost depends on the type of business you run, and the kind of risks that are associated with such businesses and whether your company has been sued for employment practices in the past. Policies will reimburse you company against the costs of defending a lawsuit in court and for any settlements that are given by the court.

To prevent employee lawsuits, educate your employees and managers to deal properly with issues. Things like, avoiding discrimination, sexual harassment claims, and training on what to do for anything else that may elude to a lawsuit.

Having the right EPLI liability coverage can help your small business stay afloat while it faces any lawsuit brought to you by your employees. For business insurance needs to protect your company, contact the independent insurance professionals at Lou Aggetta Insurance Services in Pleasant Hill, California.