The Importance of Employment Practices Liability Insurance

We are all aware of the impact the recent “me too” movement has had on the entire population of working men and women. This movement addresses the implications of suits brought on to companies in the wake of increased awareness of sexual harassment claims.

The number of lawsuits filed by employees against their employers has been rising.

While most suits are filed against large corporations, no company is immune to such lawsuits. Recognizing that smaller companies now need this kind of protection, some insurers provide this coverage as an endorsement to their Business Owners Policy (BOP). An endorsement changes the terms and conditions of the policy.

Other companies offer Employment Practices Liability Insurance (EPLI) as a stand-alone coverage. EPLI covers employers against claims made by workers who have sued the company for violating their legal rights as employees.

EPLI can protect against many kinds of employee lawsuits.

EPLI can protect against claims of:

• Discrimination (based on age, sex, race, religion, color, and national origin)
• Sexual Harassment
• Wrongful termination or discipline
• Emotional distress or mental anguish
• Invasion of privacy
• Libel or slander
• Breach of contract

Without EPLI, you could incur crippling expenses in court.

Just imagine if you or your company was ever sued for something like racial discrimination, sexual harassment or wrongful termination. If the case ended up in court, you could incur hundreds of thousands of dollars in legal costs and attorney fees. The expense could be enough to cripple most businesses, putting everything you’ve worked so hard to achieve in jeopardy.

Get protection from pre-hire to the exit interview.

It is important to note that this type of policy protects a company from the pre-hire process to the exit interview, including seasonal or temporary employees. For instance, if a prospective employee comes in for an interview and is not hired, but sues claiming he or she was the victim of discrimination, you and your company would be protected.

It is important that you review your current policies, and strongly consider obtaining a quote for this coverage from our office. Give us a call today at 732-380-0900 to learn more.