What is Employment Practices Liability Insurance?
Employment Practices Liability Insurance (EPLI) is coverage that protects your business against lawsuits brought by employees (or even those you are considering to hire).
Employee rights can be violated in a number of ways and can lead to costly legal battles for businesses. EPLI covers legal fees, settlements, and damages associated with employment practices litigation.
Types of Claims Associated with EPLI
The following are the most common types of claims associated with EPLI:
- Wrong Termination: An employee feels they were fired for a reason that goes against state laws, federal laws, or their contract with their employer.
- Discrimination: An employee claims they experienced discrimination based on race, sex, age, disability, religious views, etc.
- Harassment: An employee accuses a coworker of any type of harassment in the workplace.
- Failure to Promote: An employee claims they were wrongfully not selected for a promotion. Failure to promote claims are commonly tied to discrimination claims.
- Breach of Contract: A worker claims their employer did not follow through on the terms of their employment contract.
Why is Employment Practices Liability Insurance Important?
Litigation is becoming more common, making Employment Practices Liability Insurance increasingly important. No matter your organization’s size, you will likely experience an employment-related lawsuit at some point.
Lawsuits brought by employees can damage your company’s reputation and cause significant disruptions to business activities. Overall, EPLI will ensure your business is protected financially in the event of a claim.
Please contact Steve Longenecker (303-808-9351, x2) at Mountain Insurance: Longmont to discuss your business insurance coverage options in Longmont, CO, and our neighboring communities.
We give out $25 gift cards for referrals that become our insurance clients.
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