2015 has become known as the year of offending people. So why take a chance not having Employment Practices Liability Insurance to protect your business for the little things? Most business owners don’t realize the importance of EPLI and how it will truly protect your business. EPLI covers what D&O and General Liability doesn’t cover: lawsuits or claims filed by employees, former employees and employment candidates. This has become a valuable tool within a business’s risk management team to cover expenses associated with employee rights violations, such as alleged acts of discrimination and wrongful termination.

The cost of EPLI will vary based on the type, size and risk portfolio of your business. If the insured company has to deal with a lawsuit or claim, the insurance company will reimburse the company for expenses incurred by handling the lawsuit. These expenses will be covered regardless of the outcome of the case. The policy will also cover the cost of any settlements or judgments entered against the company.

In many cases, one employee may make an inappropriate comment to another employee and offend them. That’s when EPLI comes in to protect your business from situations you may not be able to control.

EPLI will generally cover:

Gender, age and other types of discrimination

Sexual harassment

Wrongful termination or discipline

Negligent compensation, promotion or hiring decisions

Breach of contract for employment

Emotional distress or mental anguish

Invasion of privacy

Libel or slander

Employee benefits mismanagement