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EPLI – Insurance for claims made by employees (and sometimes 3rd parties) against you for discrimination, harassment and more.

The list of potential claims continues to grow as new regulations are put in place. As more “protected groups or classes” are created, the risk of being sued becomes more prevalent.

An important factor to consider is that the cost to defend a claim that is merely alleged and that turns out to be false can be quite costly.  The legal defense costs alone could be a serious blow to any business.  Sample claims may result from:

  • Age Discrimination
  • Sexual Harassment
  • Third Party Discrimination
  • Wrongful Termination
  • Gender Discrimination
  • Retaliation
  • Wrongful Discipline
  • Wrongful deprivation of career opportunity
  • and many more..

Does general liability insurance include coverage for employment practices liability (EPL)?

It is rare to see a general liability that offers this coverage, and in most cases, it is specifically excluded.

Why is EPLI sometimes more expensive than general liability?

Ask yourself this question – if the cost of insurance is largely based on the risk of a claim, and EPLI is more expensive than general liability, what does that mean?  It suggests that the likelihood of a claim for employment practices liabiltiy is more likely for many businesses than a general liability claim.  Here’s an example:

  • You run a business that never has customers enter the premises and does not have employees visit customers — what is the risk of a slip and fall claim from a customer?  One could argue that the risk is low. On the other hand, you have 30 employees at your business who work closely together.  They talk to each other between phone calls, gossip around the water cooler, and makes jokes at lunch.  One day, a few inappropriate jokes are made at lunch and an employee complains to you.  You say that you will talk to the others, but it is late, because now the offended employee is suing you for a hostile work environment.

This is an example of a reason why you should consider EPLI.

Learn more about Employment Practices Liability Insurance:

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* Options and availability vary by location and policy.