Why Every Business Needs Employment Practices Liability Insurance (EPLI)

Running a business comes with many responsibilities, especially when it comes to managing employees. Even with the best intentions and policies in place, a miscommunication or well-intended gesture can create conflict in the workplace and potentially lead to costly consequences. At First Community Insurance & Annuity Center, our team understands the importance of employment practices liability insurance (EPLI) for these situations.

What Is EPLI?

EPLI is a crucial component of business insurance designed to financially protect policyholders from claims made by employees related to employment practices. These claims may include various allegations involving workplace behavior and communications. In today’s environment, even a single claim, whether it’s valid or not, can lead to costly legal battles and irreparable damage to your company’s reputation.

Common Risks Covered By EPLI

Employers are typically subject to both federal and state employment laws regarding workplace practices, which can be complex and frequently updated. Some of the most common risks that EPLI can help address include:

• Wrongful termination or discipline
• Discrimination based on race, gender, age, disability or other protected classes
• Sexual harassment or hostile work environment claims
• Retaliation for whistleblowing or reporting misconduct
• Failure to promote or hire fairly
• Mismanagement of employee benefits

Why Is Coverage Important?

EPLI coverage can help cover legal defense costs, settlements and judgments related to employment practices claims. This financial protection can enable your business to focus on daily operations rather than worrying about the financial impact of a lawsuit. Maintaining suitable coverage can also help make employees feel comfortable and safe in their work environment.

How to Find the Right Policy

If you’d like to learn more about how the right EPLI policy can help safeguard your business, contact First Community Insurance & Annuity Center today. We’re here to answer your questions and help you find the right coverage for your organization.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.