EPL insurance, or Employment Practices Liability Insurance, is a type of insurance policy that offers protection for businesses against claims from current, former, and prospective employees. This type of coverage protects your business from liability related to employee complaints in the workplace such as discrimination, harassment, and wrongful termination. Let’s dive into what EPL insurance entails. Learn What is Epl Insurance?
What is Epl Insurance?
What Does EPL Insurance Cover?
- EPL insurance covers claims brought by employees concerning their employment relationship with their employer. It can include coverage for third-party discrimination or harassment claims by customers or clients if the employee’s actions were taken in the course of their job. It can also cover wrongful termination based on an employee’s protected characteristics (such as age, gender, race, etc.) For example, if an employer terminates an employee because of their race or gender and it results in a lawsuit against the employer by that employee then this could be covered under an EPLI policy.
Who Needs EPL Insurance?
- Businesses of all sizes should consider having an EPLI policy in place. Small businesses may not think they need it due to their size but they are just as vulnerable to lawsuits as larger companies. Any company with employees should have some sort of protection from potential lawsuits caused by alleged discrimination or wrongful termination. Additionally, larger companies may want additional coverage options that are not included in a standard policy such as wage and hour disputes and other types of employment-related litigation.
Conclusion
EPL insurance is a vital component for any business looking to protect itself from potential lawsuits related to discriminatory practices within the workplace and wrongful termination cases brought against them by current or former employees. It is important to understand what is covered under an EPLI policy so that you can make sure you are adequately protected against any potential legal action brought against your company due to alleged mistreatment of employees. If you have any questions about Employment Practices Liability Insurance contact your insurer today for more information on how you can protect your business from costly litigation costs!