Employment Practices Liability Insurance Information
Employers must adhere to various laws, regulations and industry standards to ensure fair, equal and ethical treatment of their workers. By maintaining compliance with such requirements, organizations may have greater success in fostering a healthy work environment and positive culture. Still, even companies fully committed to these ideals may eventually face an employment practices liability claim. All businesses with employees should have adequate employment practices liability insurance (EPLI).
What Is EPLI?
EPLI can protect employers financially against claims if a current, former or prospective employee accuses them of improper workplace conduct or practices. Even if an organization is found not liable for any wrongdoing, defense costs could have significant financial ramifications. Fortunately, EPLI can provide coverage for legal expenses, settlements and judgments in response to these allegations.
What Does EPLI Cover?
Lawsuits alleging wrongful treatment of employees may arise from many accusations. Common sources of employment practices liability claims may include the following:
Why Do You Need EPLI?
- Wrongful termination
- Sexual harassment
- Improper hiring practices
- Negligent evaluation
- Failure to promote
- Wrongful discipline
- Invasion of privacy
- Mismanagement of employee benefits
All companies that have employees should prioritize EPLI. While this coverage may be critical for organizations of all sizes, EPLI may be particularly important for small- and medium-sized organizations that lack the resources to defend themselves against lawsuits. Even organizations that prioritize fair and ethical treatment of employees may eventually face accusations that could have devastating financial and reputational consequences.
Get the Right Coverage
We’re here to help. The experienced insurance professionals at Affiliated Agency Inc. have the knowledge and expertise to assist Plainview area employers in understanding and fulfilling their EPLI coverage needs. Contact us today to get started.