EPL Insurance | EPLI | Employment Practices Liability Insurance
What is EPL Insurance (EPLI)?
EPL insurance (EPLI) is a form of liability insurance which is designed to protect employers from certain lawsuits or claims made by employees alleging that their rights have been violated through wrongful acts such as sexual harassment, wrongful termination,
discrimination and other employment-related wrongful events.
An EPL insurance (EPLI) policy typically protects a company including its directors, officers, and employees against claims made by current employees, former employees, and prospective employees.
Who needs EPL insurance (EPLI) coverage?
Any company with employees should consider obtaining coverage for EPL insurance (EPLI). Complaints and lawsuits by employees claiming that their legal rights have been violated have been rising in recent years.
The Equal Employment Opportunity Commission, which is the federal agency enforcing workplace discrimination laws, handles around 100,000 complaints a year. In addition, certain complaints can be handled by state agencies or
can be handled directly through a lawsuit.
According to a study published by Chubb in 2010, the average cost of an EPL complaint or lawsuit in the prior five years was $51,975, while the median compensatory award for an EPL lawsuit was $326,640 in 2008.
Because the cost of complaints and lawsuits brought by employees can be substantial and time consuming, it is important for employers to have the proper EPL insurance (EPLI) coverage.
What is covered by an EPL insurance (EPLI) policy?
An EPL insurance (EPLI) policy typically provides coverage against actual or alleged wrongful employment-related acts, including but not limited to the following:
Wrongful dismissal, discharge or termination of employment
Breach of a written or oral employment contract or implied employment contract
Hostile work environment
Libel, slander, defamation
Infliction of emotional distress
Failure to hire
Failure to promote
Call us at 1-877-245-5887 if you have any questions regarding EPL insurance (EPLI) or wish to discuss your insurance needs.
We're looking forward to earning your business.