Employment Practices Liability Insurance

By Ginny Harrington

Employment Practices Liability Insurance is designed to protect employers against lawsuits brought by employees. This coverage is commonly referred to as EPLI insurance. EPLI is a separate coverage and, for smaller companies, can be endorsed onto a Business Owner’s Policy or a General Liability Policy. Larger companies can purchase this coverage as a stand alone policy.

Situations where this coverage might come into play are charges made by an employee of discrimination, wrongful termination, failure to promote, harassment, breach of contract, and the list goes on. You, as the employer, are at risk even if you have simply interviewed a prospective employee. Should you decide not to hire them, they could come back and allege discrimination was the reason for you not hiring them.

The premium for this type of coverage is a fraction of what you might pay should you be sued and lose. Some factors that determine the premium are:

Number of employees

The amount of coverage you purchase

Whether or not you have a human resource anti-discrimination or anti-harassment policy in place

Average court costs and legal fees for cases settled out of court can run from $10,000 to $50,000. Needless to say, courts costs and legal fees can go substantially higher if the case goes to trial. States that the highest EPLI litigation are New York, California, Texas, and Florida.

Contact the experts at Watkins Insurance Group to get more information on this coverage. (512) 452-8877.

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