Employment Practices Liability Insurance (EPLI) is designed to cover employers from wrongful acts and lawsuits arising from employment related activities. This includes such acts as sexual harassment, discrimination, wrongful termination, retaliation, defamation, failure to promote, among several other employee related claims.
Any organization that has employees is exposed to employee related lawsuits. Coverage needs and limits can depend on many factors such as how many employees an organization has to what type of industry they’re in. Employers that have a high number of employees as well as a higher turnover rate than other industries will typically have a higher exposure than other organizations, although lawsuits can stem from employees in any organization.
Sound risk management practices include implementing an employee handbook that clearly defines the policies and procedures of how employees are to act within the scope of their employment, proper employee training and development, and strong documentation in relation to human resource activities.
Higher limits of coverage will typically require a separate application and a broad understanding of the employer’s human resource management policies. In recent years the frequency of EPLI claims has matched the number of general liability claims.
Third party EPLI coverage can also be purchased with most standard markets. This would cover the employers’ wrongful acts against third parties, such as customers, subcontractors, or vendors.
If you are interested in obtaining commercial property coverage for your business or organization with one of our many reputable insurance carriers, our team of licensed and experienced agents will be happy to help you. Call us today toll free at 1-800-686-2147.