Employment Practices Liability Insurance (EPLI) is a type of insurance that provides coverage for your business in the event of employment-related claims, such as discrimination and harassment. This type of insurance is becoming increasingly important due to changes in the law, an increase in employee lawsuits, and employers’ need to protect themselves from potential financial losses related to employment issues. In this blog post, we will discuss the basics of EPLI and why it’s important.
What Does EPLI Cover?
EPLI covers a wide range of claims made by employees against their employers. These include wrongful termination, sexual harassment, discrimination based on race, age, gender or disability, breach of contract, invasion of privacy and more. It also covers claims made by third parties such as vendors and customers who believe they have been wronged by an employer’s practices.
Why Do You Need EPLI?
An employment practices liability policy helps protect your business from potential financial losses associated with employee lawsuits. Without this type of insurance coverage, any judgments or settlements resulting from such suits could be financially devastating for your business. Additionally, this type of insurance can provide peace of mind knowing that you are covered if an employee decides to sue you for any reason related to their employment.
How Much Does EPLI Cost?
The cost of EPLI depends on several factors including the size and nature of your business as well as the amount of coverage you need. Generally speaking, policies tend to range from about $1,000 – $5,000 annually depending on these factors. It’s important to note that even if you feel that your business does not need this type of coverage now, it may become necessary in the future as laws change and employee lawsuits become more common.
Employment Practices Liability Insurance is an essential form of protection for businesses in today’s environment. The cost can vary significantly depending on factors like size and industry but having this kind of coverage can help protect your business financially should any employee file a claim against you or your company related to their job or working conditions. Doing research into different types of policies available can help ensure that you get the best possible protection at an affordable rate so that you can rest assured knowing that your business is covered should any legal action arise out of your employment practices.