Employment Practice Liability Insurance
(EPLI)
Download the EPLI Request Form
Employment Practices Liability Insurance is designed to protect employers against claims of employee
sexual harassment, discrimination, or wrongful termination.
The number of lawsuits filed by employees against their employers has been rising. While most suits are filed against large corporations, no company is immune to such lawsuits. EPLI tends to be one of the most expensive claims an employer can have. Recognizing that smaller companies now need this kind of protection, some insurers provide this coverage as an endorsement to their Business Owners Policies (BOP). Other companies offer EPLI as a stand alone coverage. PFSI offers both types of coverage for your convenience.
EPLI provides protection against many kinds of employee lawsuits, including claims of:
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Sexual Harassment
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Discrimination
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Wrongful Termination
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Breach of employment contract
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Failure to employ or promote
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Wrongful discipline
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Wrongful infliction or emotional distress
The cost of EPLI coverage depends on your type of business, the number of employees you have and the
various risk factors such as whether your company has been sued over employment practices in the past.
Most policies will reimburse your company against the cost of defending a lawsuit in court, and for the
judgments and settlements. Most policies cover legal costs whether your company wins or loses the suit.
These policies do not typically pay for punitive damages, civil, or criminal fines.
To prevent employee lawsuits, educate your managers and employees so that you minimize problems in the
first place. Some effective practices are listed below:
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Create effective hiring and screening programs to avoid discrimination in hiring.
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Do not promise what you cannot honor, will not honor, or may decide later to revoke.
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Include an Employment-at-Will statement on your application. This means that an employer may dismiss the employees at the employer’s discretion, at any time, for any reason or for no reason, and without giving the employee prior notice. (Please note that this method is seldom used today, even in states where it is still in place, courts have found that employers cannot discriminately terminate an employee without some justification.)
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Post corporate policies throughout the workplace and place them in employee handbooks so polices are clear to everyone.
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Do not discuss the reasons for an employee’s discharge with other employees.
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Show employees what steps to take if they are the object o f sexual harassment or discrimination by a supervisor. Make sure supervisors know where the company stands on such behaviors and which behaviors are permissible.
Hard as you might try, you may not be able to avoid a lawsuit. That’s why it is key to protect your business with EPLI coverage, which provides coverage for claims made against an employer for wrongful employment practices such as discrimination, sexual harassment, and wrongful termination.
For more details or a quote please complete the form on the reverse side of this information sheet.
If you have additional questions please feel free to call or email Debra@pfsi.net, 303-444-1234.
Download the EPLI Request Form
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