Employment practice liability insurance (EPLI) is specialized insurance designed to protect against loss incurred in litigating and settling wrongful employment practices liability claims. Typically structured as gap insurance for the company, it provides protection against lawsuits not covered by general business liability insurance such as:
- Discrimination
- Breach of Contract
- Wrongful Discharge
Directors’ and officers’ liability insurance only protects the individual and not the company itself. EPLI is designed to fill this gap in coverage. It is designed to provide reimbursement for the costs incurred in defending a lawsuit but does not cover reimbursement for any penalties suffered.
Costs for EPLI are dependent upon the size of the organization, the type of business and other risk factors.
EPLI is becoming more common in these litigious times as employment lawsuits become just another part of doing business. Would your company be prepared to absorb the risk of loss from such employment practices claims?
EPLI is not meant to replace sound and secure employment practices. In fact, most insurance companies will not insure a company without some basic employment practices in place. Employee handbooks, post-incident investigation practices, and arbitration or mediation policies are some of the major items that insurance companies expect an employer to have when applying for an EPLI policy.
The best time to discuss your Employment Practice Liability Insurance is now. Contact us today!