What is employment practices liability insurance?
Employment practices liability insurance (EPLI) is a form of professional liability insurance for businesses of any size. EPLI policies cover legal costs, including defense costs and settlement fees, for lawsuits based on employment practices. EPL coverage typically applies against claims of:
Certain policies may also include coverage for wage and hour disputes. For example, your employee claims they were not paid their complete wages or argues whether or not they were approved overtime.
Most policies operate on a claims-made basis, which means only claims made during the policy term are covered. Since many employment practice claims are made years later, it is important to maintain your EPLI coverage.
- Discrimination (based on sex, age, race or national origin, etc.)
- Sexual harassment
- Retaliation
- Breach of employment contract
- Wrongful termination
- Wrongful failure to promote
- Wrongful discipline
- Violation of the Family and Medical Leave Act
- Negligent evaluation
- Mismanagement of employee benefit plans
- Infliction of emotional distress
Certain policies may also include coverage for wage and hour disputes. For example, your employee claims they were not paid their complete wages or argues whether or not they were approved overtime.
Most policies operate on a claims-made basis, which means only claims made during the policy term are covered. Since many employment practice claims are made years later, it is important to maintain your EPLI coverage.
