Employment Practices Liability
In the lifetime of a company, decisions get made that will affect its employees. While certain management processes such as disciplining, firing or deciding not to promote a worker may seem fair to executives and decision-makers, some personnel may not see it the same way.
If an employee decides to take legal action, the consequences could be devastating — in capital, resources, and goodwill — for your company, even if you end up winning in court. That’s why we’d like to introduce you to EPLI, the insurance that protects your company, staff, and customers from potential employee-related lawsuits.
Read on to understand if this insurance is right for your business.
What Is Employment Practices Liability Insurance?
EPLI is insurance that gives companies coverage against employment-related lawsuits such as claims of harassment, wrongful termination, breach of contract, discrimination or other work-related issues. Such lawsuits are increasingly common in today’s business environment. The most common claims filed are for retaliation, sexual harassment, discrimination, and wrongful termination.
Many large corporations are well protected by substantial coverage and can deal with nearly any type of employment-related lawsuit. Unfortunately, new and/or small businesses can be highly vulnerable to this type of claim. Many of these businesses lack an employee handbook or a legal department that can advise on proper procedures to follow regarding terminating, disciplining and hiring employees.