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Bill West - Wm B West Insurance Agency, Inc.
Illinois & Wisconsin (224) 538-2006
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BUSINESS INSURANCE: What
is employment practices liability insurance (EPLI)?
1All insurance questions and answers
are provided by the Insurance Information Institute www.iii.org
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 Call
Bill West, Illinois & Wisconsin insurance agent, to answer all
of your insurance policy questions.
(224) 538-2006 - Gurnee, IL
Contact
Bill West - Wm. B. Insurance Agency, Inc. |
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Additional Coverages
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- Can
I insure the life of a key employee?
- Do
I need professional liability insurance?
- Do
I need a commercial auto insurance policy?
- What
is employment practices liability insurance (EPLI)?
EPLI covers businesses against claims by workers that their legal rights as employees of the company have been violated.
The number of lawsuits filed by employees against their employers has been rising. While most suits are filed against large corporations, no company is immune to such lawsuits. Recognizing that smaller companies now need this kind of protection, some insurers provide this coverage as an endorsement to their Businessowners Policy (BOP). An endorsement changes the terms and conditions of the policy. Other companies offer EPLI as a stand-alone coverage.
EPLI provides protection against many kinds of employee lawsuits, including claims of:
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Sexual harassment
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Discrimination
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Wrongful termination
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Breach of employment contract
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Negligent evaluation
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Failure to employ or promote
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Wrongful discipline
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Deprivation of career opportunity
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Wrongful infliction of emotional distress
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Mismanagement of employee benefit plans
The cost of EPLI coverage depends on your type of business, the number of employees you have and various risk factors such as whether your company has been sued over employment practices in the past. The policies will reimburse your company against the costs of defending a lawsuit in court and for judgments and settlements. The policy covers legal costs, whether your company wins or loses the suit. Policies also typically do not pay for punitive damages or civil or criminal fines. Liabilities covered by other insurance policies such as workers compensation are excluded from EPLI policies.
To prevent employee lawsuits, educate your managers and employees so that you minimize problems in the first place:
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Create effective hiring and screening programs to avoid discrimination in hiring.
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Post corporate policies throughout the workplace and place them in employee handbooks so policies are clear to everyone.
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Show employees what steps to take if they are the object of sexual harassment or discrimination by a supervisor. Make sure supervisors know where the company stands on what behaviors are not permissible.
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Document everything that occurs and the steps your company is taking to prevent and solve employee disputes.
- What
does kidnap and ransom insurance cover?
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| The information on these pages is intended to
be accurate at the time posted. It is for general informational purposes
only. Because of the nature of this information, it may not be applicable
in your area or current at the time you read it. Please see your agent
or review the policy contract for detailed information you can rely
on. The information on this site may change without prior notice. |
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