EPLI Who Needs it? When do you need it? and Why do you need it?

What is EPLI? – Employment Practices Liability Insurance – This is a very important coverage that is often overlooked or misunderstood yet is important for every business owner to have.

What is EPLI coverage? It is a coverage that protects a business owner from claims made by employees that their legal rights have been violated. This includes but is not limited to:

• Sexual Harassment
• Discrimination
• Wrongful Termination
• Breach of Employment Contract
• Negligent Evaluation
• Discrimination in Hiring
• Failure to pay wages cases

Why do you need it? As a business owner, there is a responsibility to comply with many rules as an employer. Unfortunately, we are not all perfect and make mistakes. Business owners also tend to have a target on their back considering how litigious our society is.

When do you need to have it? Most assume that if you do not have any employees, you do not need this coverage but that is not entirely true. There are two other instances that need to be considered having EPLI coverage in place for.

1. If you hire or work with subcontractors that do work under your direction. Any part-time workers would fall under this as well.
2. Once you decide it is time to hire and begin interviewing, you should have the Employment Practices Liability Coverage in place. There are several cases of employment candidates sueing a potential employer claiming discrimination so having coverage to protect you is important.

You have worked hard to establish your business, you should have all the proper coverages to protect your investment so you can focus on providing your clients the best service you have to offer.

If you would like to talk to one of our Insurance advisors about EPLI Coverage or any other Business Insurance needs, please call 469-606-4590 or click here to send us a message.