Do you have employees? If so, you need Employment Practices Liability insurance.

What is EPLI?

Employment Practices Liability Insurance (EPLI) provides coverage for defense and settlement of claims made as a result of alleged violations of tort law and federal and/or state statutes governing the employment relationship.  In the past several years, the courts and legislatures have rapidly expanded the exposures faced by employers.

Common EPL Exposures

▪  Wrongful Hiring or Firing (or Constructive Discharge)

▪  Unlawful Harassment (including sexual harassment)

▪  Retaliation by an employer against employees who exercise a legal right

▪  Discrimination against employees or third parties because of their race, gender, etc

Private D&O policies regularly include EPL coverage.  An overall average EPL award greater than $600,000 per claim means a company can afford MANY years of EPL premium for the cost of just ONE claim.


Source: Jury Verdict Research, EPL Jury Award Trends and Statistics, 2006

When it comes to EPL lawsuits, it is not a matter of if you are sued, but when you are sued.

Using HR policies and training programs can help mitigate your risk, but only EPL insurance provides the real protection you need.
Many Federal Statutes that affect the workplace apply to even very small companies:

▪  The Americans with Disabilities Act (ADA) applies to all employers with 15 or more employees
▪  The Civil Rights Acts of 1964 and 1991 (including Title VII) applies to employers with 15 or more employees