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2/8/2012 - What is employment practices liability insurance?


Issues with employment and hiring fall under employment practices coverage.

According to the Insurance Information Institute, the number of employees that file lawsuits alleging their rights have been violated has been on the rise. As a result, this has led to businesses seeking out protection.

Employment practices liability insurance is a policy that covers employers from sustaining significant financial losses should they be sued by one or more of their employees for certain actions. These could include wrongful termination, sexual harassment, claims of discrimination, breach of contract and negligent evaluation, among other things.

The III indicates that EPLI coverage policies and their costs vary among providers based on several factors. For example, if a business has been sued by its employees in the past, their costs may differ compared to companies that have never had any legal issues.

In addition, similar to other liability insurance plans, EPLI covers legal costs a company endures, but it may not cover those that relate to criminal fines or punitive damages, according to the III.

For more information on employment practices liability insurance and what it covers, speak to an independent Selective agent.

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