Employment Practices Liability Insurance Attorney
Employment Practices Liability Insurance (EPLI) generally covers employers from employment-related liability claims. While all policies differ, generally Employment Practices Liability Insurance (EPLI) protects employers from damages resulting from workplace-liability claims. Employment Practices Liability Insurance (EPLI) generally covers defense costs, judgments and settlements (up to the policy limits) for the corporate entity, former and current employees, directors, and officers. It covers a variety of workplace-related legal actions, including:
- Failure to employ or promote
- Breach of employment contract
- Discrimination
- Sexual harassment
- Wrongful termination
- Negligent evaluation
- Mismanagement of employee-benefits plans
- Wrongful discipline
- Deprivation of career opportunity
- Infliction of emotional distress
- Mismanagement of employee-benefits plans
Generally, Employment Practices Liability Insurance (EPLI) policies do not provide coverage for bodily injury or property-damage cases, nor do they cover cases that another insurance policy specifically covers.
Employment Practices Liability Insurance (EPLI) premiums vary from state to state and from company to company. Generally an insurer calculates premiums by determining the amount of coverage a business needs and its perceived risk. An insurer will base rates on several risk factors, including the number of employees at a company, the turnover ratio, whether or not the business has a human resources department, and any past harassment or bias suits against the company.
Businesses that purchase Employment Practices Liability Insurance (EPLI) coverage may actually reduce the likelihood of workplace harassment and discrimination. Insurers generally review a company to check for workplace liability before they issue a policy. And since insurers hate risk, they’ll usually recommend changes that reduce a business’s exposure to lawsuits. Many of the steps businesses can take to ward off harassment claims and meet the demands of insurers begin with basic education and setting up the right environment.
