Employment Practices Liability Insurance, also known as EPLI, shields businesses from claims made by employees alleging breaches of their legal rights within the company. As the frequency of lawsuits initiated by employees against their employers escalates, even smaller enterprises are recognizing the necessity for this protection. Some insurers integrate EPLI into their Businessowners Policy (BOP) as an endorsement, while others offer it as standalone coverage.
EPLI guards against a spectrum of employee lawsuits, spanning from accusations of sexual harassment and discrimination to wrongful termination and breach of employment contract. The coverage also extends to areas such as negligent evaluation, failure to employ or promote, wrongful discipline, and mismanagement of employee benefit plans.
In the event of a lawsuit, EPLI policies provide insurance coverage for legal defense expenses, as well as judgments and settlements.