Most people would never drive a car without auto insurance in place to protect them from the potential liability of an at-fault accident. It’s the same with a company manufacturing and selling products – most of them see the need for general/products liability coverage to cover slip and falls on their premises and/or the cost of someone getting injured using their products.
One area that is often overlooked is covering the cost of handling a claim from a disgruntled employee. Employment Practices Liability Insurance (EPLI) covers claims from employees or third parties for sexual harassment, discrimination, wrongful termination, breach of employment contract, failure to employ or promote, pregnancy, invasion of privacy, and gender discrimination, to name a few.
We live in a very litigious society. Discrimination claims have risen substantially over the past few years. Employers face challenges every day, one of which is the challenge of making sure all employees are treated fairly and not discriminated against. Even if the claim is fraudulent, just the cost to defend could be astronomical. If your business performs any of the following actions, you need EPLI coverage:
- Hires or fires employees
- Demotes or promotes employees
- Offers raises to employees
- Communicates to or about employees
- Manages benefits for employees
Here is a list of some of the things not covered by EPLI:
- Illegal activities
- Criminal fines
- Unpaid wages
- Liabilities for acts of intentional or dishonest wrongdoing
- Claims related to employment benefits
- Claims related to workers compensation
Call us or your insurance agent today to talk about this important coverage.