Employment Practices Liability Insurance (EPLI) protects businesses from lawsuits related to employment-related claims brought by employees, job applicants, or even third parties. It covers legal defense costs, settlements, and judgments.
What Does Employment Practices Liability (EPL) Insurance Cover?
Coverage can vary depending on the policy, but it typically includes:
- Wrongful Termination: Claims that an employee was fired for illegal reasons (e.g., discrimination, retaliation).
- Discrimination: Claims of unfair treatment based on race, gender, age, religion, disability, pregnancy, or other protected characteristics.
- Harassment (Including Sexual Harassment): Claims of a hostile work environment, inappropriate behavior, or quid pro quo harassment.
- Retaliation: Covers claims that an employer punished an employee for engaging in a protected activity (e.g., whistleblowing, reporting harassment, filing a workers’ comp claim).
- Failure to Promote or Hire: Claims that a candidate or employee was unfairly denied a job or promotion.
- Wage & Hour Violations: Some policies may cover legal defense costs for wage-related claims, such as: misclassification of employees (exempt vs. non-exempt), unpaid overtime, and failure to provide breaks.
- Defamation, Libel & Privacy Violations: Covers claims that an employer damaged an employee’s reputation or violated their privacy.
All businesses with employees can benefit from Employment Practices Liability Insurance, especially those with a high-turnover rates and those that frequently hire.