Employment Practices Liability
Employment practices liability insurance or “EPL” is liability insurance that covers certain employment related claims made by employees. For example, if a manager harasses or discriminates against an employee (or is alleged to have done so), EPLI will provide a defense and possibly claim payment on behalf of the business.
In today's world this is critical coverage to have if you have employees or if you have employees working with the public or on site at other businesses. Such coverage can also protect the business owner from meritless claims brought by disgruntled employees. Even though as business owners we strive to be fair and non-discriminatory, old habits die hard, age and gender gaps lead to miscommunication, and EPL coverage can serve as a last line of defense against employment claims.
EPL policies and coverage is less standardized than other forms of coverage. Sometimes EPL coverage is bundled in a business owner's policy or as a part of other liability insurance. It may also be a separate coverage or endorsement.
EPLI coverage generally covers:
- Workplace Harassment
- Workplace Discrimination
- Wrongful Discharge
- Emotional Distress
- Possibly Privacy-Based Claims
- Possibly Reputation Claims (Defamation)