Employment Practice Liability Insurance (EPLI)

You and your employees do your best to keep your business flourishing and achieve constant growth. That’s where your resources should be utilized. You should not have to invest resources in tracking, recording or monitoring your prospective, existing and previous employees’ actions and conversations. But every now and then, these actions and conversations cross the boundaries and gets out of hand. A joke and a comment might be blown up into a lawsuit. This is where the employment practice liability comes into play.

 

The adverse effect of such lawsuit include bad reputation if not bankruptcy in the most extreme cases. Every personnel decision holds an employment practice related risk. Even if the case was made up of groundless accusations or false evidence, the cost of defending and resolving the case can be detrimental financially.

 

There have been a surge in employers being sued by former, current and even prospective employees! “The median employment practices liability award in 2005 was OVER $250,000”. As long as there is someone else other than yourself on the payroll, you will need employment practice liability coverage.