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What Is Employment Practices Liability Insurance?

By January 22, 2019March 11th, 2019Business Insurance, Insurance, Liability Insurance

Employment Practices Liability Insurance is often referred to as EPLI within the insurance industry. EPLI is coverage for lawsuits or claims relating to workplace discrimination, wrongful termination, sexual harassment and more. These types of lawsuits and claims are becoming more prevalent than ever. Before you think it can’t happen to your business, let’s look at a very recent example. In 2018, Target settled a discrimination lawsuit for $3.7 million. Target was being sued on the basis that criminal background checks in accordance with job applications discriminate against minorities.  Target is a large corporation but small businesses are not exempt from similar lawsuits. Employment practices liability insurance is a necessity for any size business.

What does employment practices liability insurance cover? 

Legal Defense

An employment practices lawsuit must be defended whether or not it is a legitimate claim. The cost to defend an employment practices claim could be a huge financial disruption to a small business. An EPLI policy would cover the cost of your legal defense. EPLI policies do not cover criminal conduct.

Judgments & Settlements

EPLI will also cover the judgments and settlements of the claim up to your policy limit. The employer is also required to pay the employee’s legal fees if they lose the case.

Who is protected? 

This can vary by policy and insurer. Some EPLI policies only provide coverage to employee claims against the business owner. Our partner, The Hartford, offers policies that protect your business from claims by customers, vendors, and employees.

Talk to your agent about which form of EPLI best suits your business.

If you are in need of employment practices liability insurance then give us a call at Bradshaw & Weil, Inc. in downtown Paducah, KY today!

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