Employers Practices Liability Insurance (EPLI)

Workplace relationships have never been as litigious as they are today. Be prepared.

What You Need to Know About EPLI Insurance

The number of lawsuits filed by employees against their employers is rising. No company is immune to such lawsuits. If you have employees, you run the risk of a lawsuit.

Can your business afford to defend itself against alleged wrongful employment accusations? Most can't.

What Does EPLI Cover?

Employment Practices Liability Insurance (EPLI) provides protection against many kinds of employee lawsuits such as:

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

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The Cost of EPLI Coverage

The most correlated factor of EPLI risk is the organizational size. Naturally, the more employees a company has, the more likely it is that one of the employees will find some discriminatory basis for a lawsuit.

Most underwriters are looking closely at your organization's investment in HR talent, policies, and procedures. If your company has not put these items in place, it's possible that you will pay more for your EPLI coverage than one that does.

So, if you're still wondering if your business needs to buy EPLI or not, the answer is that you most likely do. Does your business perform any of the following actions?

Hire or fire employees
Demote or promote employees
Offer raises to employees
Communicate to or about employees
Manage benefits for employees

If so, then you need EPLI coverage.

Tips for Preventing Employee Lawsuits

While there is no way to completely prevent employee lawsuits, there are things that you can do as a business owner to minimize the risk and decrease the chances of an employee claim.

One mistake businesses make is having a handbook, and not enforcing it. If you are going to have a comprehensive handbook describing proper behavior at the workplace it's crucial that you never deviate from its policies. Additionally:

Be sure to educate your employees and provide adequate training
Enforce zero-tolerance related to harassment and discrimination
Take all employment discrimination complaints seriously
Launch all investigations quickly

How The Bunker Can Help

At The Bunker, we work with some of the top EPLI insurance carriers in South Florida to make sure your business is well protected. Being a hybrid risk management and insurance firm, we can help you not only move your business from danger to a safe place but also improve your bottom line.

EPLI Frequently Asked Questions

Does EPLI Insurance Cover Wage and Hour Claims?

Most EPLI policies does not automatically cover wage and hour claims, such as failure to pay for overtime, it is usually available to add by endorsement. The wage and hour claim endorsement will have a separate from the EPLI limit, and only covers the defense costs associated with the claim, no judgements or settlements.

What's the Differences Between EPLI Insurance and Employment Liability Insurance?

Both shield business owners from employee claims.

Employer liability insurance assists in the settlement of cases involving employee injury.

EPLI protects employers from litigation arising from their hiring practices. This will protect your business from claims of discrimination in the workplace, wrongful termination, or creating a hostile work environment.

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