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Defending your workplace

What Is Employment Practices Liability?

Employment Practices Liability Insurance, or EPL insurance (EPLI), provides employers with protection against claims made by employees related to discrimination (e.g., based on factors like gender, race, age, or disability), wrongful termination, harassment, and other employment-related issues, including failure to promote.

Why Is It Important?

Large corporations typically have robust employment practices insurance in place and are well-equipped to handle a variety of employment-related legal challenges. However, small or newly established businesses are often more vulnerable to employment-related claims. This vulnerability arises from their common lack of a legal department or a comprehensive employee handbook that outlines policies and procedures for hiring, disciplining, or terminating employees.

Employment practices liability insurance is a critical safeguard for your business against claims brought by past, current, or potential employees. Despite the best of intentions and comprehensive non-discrimination guidelines, mistakes can occur, and well-intentioned employees may become targets for disgruntled individuals.

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