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What is Employment Practices Liability Coverage?



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https://robfreeman.com/hi-neighbor/ - Employment practices liability coverage, aka “EPLI”, or EPL, is a type of management liability insurance that is important coverage for any employer, because it protects against claims arising from the employer-employee relationship…

If your business has at least one employee, employment practices liability coverage protects you from the hiring process through termination and provides you with protection against claims of retaliation, wrongful termination, age, racial or religious discrimination, sexual harassment (#metoo) or other workplace-related harassment, failure to promote or hire, and other employment related claims.

EPLI insurance protects your business from employment related claims in two primary ways: 1) Helps pay for legal and defense costs and, 2) pay for legal settlements and/or judgments.

Is EPLI insurance worth it? EPLI claims can be costly because they can be complex, time consuming and difficult to defend… A study by Hiscox indicates that the average EPLI claim costs $160,000. This includes the cost of defense and settlement. As such, it makes sense to invest in employment practices liability coverage to protect your business from a covered claim.

Your company can do everything right, but still be the target of an employee complaint that results in a lawsuit and the required legal defense. You could even be the target of a lawsuit by employees outside your firm if a complaint is made by a third party against someone who works for you.

It pays for employers be aware of 1st party EPLI and 3rd party EPLI and to familiarize themselves with the laws that EPLI claims are often brought under, including the Civil Rights Acts of 1964 and 1991, the Age Discrimination in Employment Act, ADA and FMLA…

If you have questions about employment practices liability insurance for your business, please feel free to schedule an appointment with me at the link above.
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