Is Employment Practices Liability Coverage Necessary?

Is Employment Practices Liability Coverage Necessary?

Liability insurance is a must for every business owner. Without proper coverage, you could be liable for exorbitant legal fees and settlement costs. In addition to unhappy clients and customers, disgruntled employees can also cause trouble for your company.

What Is Employment Practices Liability Insurance?

EPLI is liability coverage that protects your company from claims made by your employees. EPLI claims vary from one industry to another, but common issues include the following:

  • Harassment – Usually sexual in nature, harassment can include any kind of behavior by another work colleague that makes a worker feel uncomfortable. This can include unwanted comments or physical actions.
  • Wrongful termination – An employee who feels they have been terminated unfairly could seek legal action.
  • Retaliation – If an employee speaks out on behalf of a co-worker they feel has been treated unfairly and the employee is then overlooked for a promotion or a raise, they may file a claim of retaliation.

It’s important to realize that even if a claim is unwarranted, your business may be liable to pay the legal fees.

Is EPLI Coverage Necessary?

Every business owner hopes they will never need the coverage, but choosing to go without it can be a dangerous and expensive gamble.

Make sure your business is protected against unwanted litigation with a comprehensive liability package.