Understanding EPLI and Common Claims

Employers are beholden to certain standards and legal requirements regarding how they treat their employees and manage their workplaces. However, even law-abiding and diligently operated organizations may eventually encounter scenarios where they’re accused of improper employer behavior. An in-depth understanding of employment practices liability insurance (EPLI) can prove invaluable.

What is EPLI?

As its name suggests, these policies are typically tailored toward helping your business absorb and recover from the financial ramifications of employment practices liability claims. Such accusations can have catastrophic consequences for your company’s fiscal interests and may damage its reputation.

What Scenarios Can My Policy Cover?

Although exact details may vary, EPLI policies can generally help your business respond to many common allegations, including wrongful termination, harassment, discrimination, mismanagement of employee benefits and improper hiring practices. Consider the following real-life scenarios and how EPLI could make all the difference:

• Imagine your company had to fire an employee for misconduct. If the terminated party felt this action unfair, they might file a wrongful termination claim. In such situations, they could seek significant damages and defending your organization could require expensive legal assistance. Fortunately, EPLI can help manage these costs.

• Harassment can be a particularly toxic part of a work environment. If an employee accuses their manager or coworker of behavior, such as making inappropriate comments or unwanted sexual advances, resulting losses and reputational harm could have extensive consequences. EPLI can help limit out-of-pocket ramifications.

• Even parties who may not have ever worked for your company could file an employment practices liability lawsuit. For example, if a candidate believes they were passed over for a position for unfair reasons, such as biased interviewers and recruiters, a resulting lawsuit could have dire consequences should you lack sufficient EPLI.

We’re Here to Help

Contact Trilogy Insurance Brokers, Inc. in Costa Mesa, California, today to learn more about EPLI coverage or compare personalized quotes.

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.