Skip to content Accessibility info

The Reis Group Blog

All You Ever Wanted to Know About Insurance

Employment Practices Liability Insurance

In recent years, the number of lawsuits filed by employees against their employers has been rising. Both large corporations and small businesses are at risk. If you own a business with employees, it is vital that you have employment practices liability insurance (EPLI). Here are some of the most common questions about EPLI, and their answers.

What is Employment Practices Liability Insurance?

Employment practices liability insurance is an insurance policy that can protect your business against many kinds of employee lawsuits, including claims of:

  • Sexual harassment
  • Discrimination
  • Wrongful termination
  • Breach of employment contract
  • Negligent evaluation
  • Failure to employ or promote
  • Wrongful discipline
  • Deprivation of career opportunity
  • Wrongful infliction of emotional distress
  • Mismanagement of employee benefit plans

How Much Does EPLI Cost?

The cost of EPLI coverage depends on a number of factors such as your type of business and the number of employees you have.

How Does EPLI Work?

An EPLI policy will reimburse or pay on behalf of your company for the costs of defending a lawsuit in court, and any judgements or settlements within your policy’s limits.

In addition to your EPLI policy, you can protect yourself from employee lawsuits by following these tips from the Insurance Information Institute:

  • Create effective hiring and screening programs to avoid discrimination in hiring.
  • Post corporate policies throughout the workplace and place them in employee handbooks so policies are clear to everyone.
  • Show employees what steps to take if they are the object of sexual harassment or discrimination by a supervisor. Make sure supervisors know where the company stands on what behaviors are not permissible.
  • Document everything that occurs and the steps your company is taking to prevent and solve employee disputes.

To learn more about EPLI and other types of business insurance, contact The Reis Group today.