Employer-related risks, including issues like sexual harassment, wrongful termination, or discrimination, can be among the most damaging exposures for a business. Employment practices liability (EPL) litigation can significantly impact employers of all sizes, potentially leading to financial devastation and lasting damage to an organization's reputation.
Some common examples of employment-related claims are
Defense costs, including court fees, attorney fees, and related expenses.
Covers the payment of settlements or judgments up to the specified limits.
Fines or penalties imposed by government agencies.
The Importance of Employment Practices Liability Insurance
There has been an increase in employment dispute claims in the U.S. against businesses of all sizes and across industries in recent years. Employees alleging workplace discrimination, privacy invasion, defamation, and retaliation are reporting violations of their rights. Even businesses with sound practices and policies can be vulnerable to claims of both intentional and unintentional infractions.
It's a common misconception that these lawsuits are covered under Workers' Compensation Insurance. Instead, a specific type of professional liability insurance is required to provide the necessary coverage. The need for Employment Practices Liability Insurance (EPLI) extends beyond protecting your business's financial assets in case of a claim or judgment. It is also crucial for when a claim is filed.
The pertinent question for each company is not whether it will face an employment practice liability (EPL) claim but when it will, how much it will cost, and the potential harm to its brand and reputation. Traditional rules, processes, and supervisory training are no longer sufficient to shield companies from the high costs of employment litigation.
By securing Employment Practices Liability Insurance from our Insurance Agency, you can ensure that your business is protected against these risks, safeguarding both your financial assets and your reputation.
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Retaliation
Wrongful Termination
Harassment
Emotional distress
Discrimination
Retaliation coverage
Risk Factors
In a retaliation claim, the employee alleges that they are being harassed or discriminated against as punishment for speaking out about issues occurring to others in the workplace. Retaliation claims are often related to pay cuts or demotions that do not affect the employee’s overall performance.
Solution
The business can take an EPLI to cover themselves from any damages or claims.
Wrongful termination coverage
Risk Factors
Wrongful termination is any firing done in violation of federal, state, or local laws, the terms of an employment agreement, or for reasons that go against public policy.
Solution
The business can take an EPLI to cover themselves from any damages or claims.
Harassment coverage
Risk Factors
The most prevalent type of workplace harassment is of a sexual nature. Sexual harassment entails unwanted sexual advances, both physical and verbal. Workplace harassment claims have been steadily rising over the last few years.
Solution
The business can take an EPLI to cover themselves from any damages or claims.
Infliction of mental or emotional distress
Risk Factors
Intentional infliction of emotional distress occurs when the employer purposely causes emotional distress to employees by way of some conduct that is not fit for the workplace.
Solution
The business can take an EPLI to cover themselves from any damages or claims.
Discrimination coverage
Risk Factors
Many types of discrimination can occur at work based on race, religion, sex, disability, age, equal pay, national origin, genetic information, pregnancy, and more.
Solution
The business can take an EPLI to cover themselves from any damages or claims.
At our Insurance Agency, we understand that every business has unique employment practices and risks. That's why we offer customizable EPLI coverage options to fit your business's specific needs and budget. Our team of experienced professionals can work with you to design a coverage plan that provides the protection you need at a price you can afford.
Don't let employment-related claims derail your business. Contact us today to learn more about our Employment Practices Liability Insurance coverage and how we can help protect your business from workplace claims.
