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Employment Practices Liability Insurance
Employment lawsuits don’t have to be true to be expensive and cause significant workplace damages. EPL insurance provides you with extra peace of mind if an unexpected claim occurs.
A business is at risk any time it hires, fires, promotes, or demotes people.
If anyone makes an employment claim against you, you can expect to pay approximately $200,000 on average. This is why many business owners rely on employment practices liability (EPL) insurance to protect them from expensive allegations.
eSpecialty uses a streamlined EPL selection process to provide multiple competitive options from top insurers across the nation. Our experienced experts will help evaluate your personal risks and choose the best combination of coverage and price.
Employee liability issues can feel chaotic
How eSpecialty stands out
Common EPL Exposures
Wrongful Termination claims can arise if an employee believes they have grounds for unjustified termination of their employment contract.
Employee Discrimination can be a huge claim if an employee thinks they are being negatively targeted based on their age, religion, race, gender, or disability.
Workplace Harassment, whether sexual, verbal, or based on other protected characteristics, can lead to lawsuits and significant financial repercussions.
Breach of Employment Contracts or implied promises such as agreed-upon wages or working hours can result in legal disputes and employee claims for damages.
Sexual Harassment claims in the workplace can have serious consequences, including legal penalties, employee turnover, and damage to your company's reputation.
Failure to Hire or bias in the hiring process can result in legal challenges if a potential employee feels they were wrongfully not chosen for a job.
Enforcement Actions by the Equal Employment Opportunity Commission (EEOC) can lead to investigations and penalties for violations of federal anti-discrimination laws.
Claims from Non-Employees can arise from customers, clients, and vendors who allege discrimination or harassment from you or your employees.
Special Situations
Buying or Selling a Business
If you are buying or selling a business that carries EPL insurance, the EPL policy will typically terminate on the closing date, and tail coverage (“Tail”) will be put into place. Tail provides coverage for claims related to events that happen prior to the closing but are not made until after the closing. These are often in place for two to five years.
An option for Tail coverage may be built into EPL insurance policies, but there is a way to secure “Standalone Tail” from third-party insurers if needed.
Questions about your special situation?
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EPL insurance coverage checklist
Risk management is crucial for minimizing exposure to potential employment-related claims. Having procedures in place and taking proactive measures is really the best way to start protecting your business.
Create an Employee Handbook
Spell out the organization’s policies and procedures, as well as the process for employees to file complaints when they have concerns.
Promote Respect & Inclusivity
Create an environment where diversity and inclusivity are celebrated and emphasize the importance of mutual respect among coworkers.
Training & Education
Conduct regular training sessions for managers and employees on EPL-related topics. This could include diversity awareness, conflict resolution, and workplace conduct.
Respond to Complaints
Establish a clear procedure for handling employee complaints and include a goal time-frame for investigating each issue (the sooner, the better).
Encourage Open Dialogue
Create opportunities for employees to provide feedback on company policies and practices. Take employee concerns seriously.
Audits & Reviews
Regularly review and update your policies and procedures to ensure they remain compliant with current laws and best practices.
Note: Insurance policies are not all the same. Some policies are more comprehensive than others, and some policies provide broader coverage in specific areas. In addition, each insured may have different exposures and coverage needs. We encourage you to read your policy and consult with an insurance expert such as eSpecialty Insurance.