Employment Practices Liability Insurance
Recent discrimination lawsuits have triggered renewed interest in this coverage. If you have one or 500 employees, Employment Practices Liability (also known as EPLI or EPL) is a must in your risk management arsenal.
EPLI covers lawsuits brought by employees (past, present or prospective) against the agency, alleging wrongful discharge, discrimination or other certain types of harassment. The policy may pay for legal expenses, judgments and settlements.
According to a 2015 Hiscox study, about 25% of cases result in a judgement of $500.000 or more, and on average, took 275 days to resolve.
Common Claim Examples
o Sexual Harassment
o Discrimination (Age, Sex, Sexual Orientation, Religious Beliefs)
o Hostile Working Environment
o False Representation
o Breach of Employment Contract
o Wrongful Termination
o Infliction of Emotional Distress
o Wrongful Discipline
o Failure to Employ or Promote
Risk management tools such as having an employee handbook with a anti-discrimination/harassment policy, drug testing, state and federal background checks, managerial training, thorough record keeping and pro-actively investigating employee claims can help lower your risk.