WORLD EVENTS

Employers' liability insurance protects the employer if a worker is not covered by workers' compensation or if they decide to sue the employer.

What is employment practices liability insurance (EPLI)?

Employment practices liability insurance, known in the trade as EPL insurance or EPLI, provides coverage to employers against claims made by employees alleging:

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• Discrimination (based on sex, race, age or disability, for example)

• Wrongful termination

• Harassment

• Other employment-related issues, such as failure to promote

Large corporations typically have substantial employment practices insurance coverage in place and are prepared to deal with just about any employment lawsuit. However, small or new businesses are often the most vulnerable to employment claims. That’s because they usually lack a legal department or employee handbook detailing the policies and procedures that guide hiring, disciplining or terminating employees.

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More about employment practices liability insurance

The cost of insuring your business for EPLI coverage depends on a variety of factors, such as:

• The number of people you employ

• Whether you've had prior suits lodged against your company

• The percentage of employee turnover

• Whether you have established rules and practices in place

Depending on the size of your company, EPLI can be offered as an endorsement to a Businessowners policy (BOP) or a general liability policy. Also, a specific stand-alone policy can be written in conjunction with a BOP.

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EPLI coverage is usually written on a claims-made basis. This means the incident resulting in the claim had to occur during the coverage period. Because employment claims often come months or even years after the alleged incident, your company might be vulnerable if your insurance coverage was dropped or if tail coverage (liability insurance that extends beyond the end of the policy period) wasn't purchased.

Employment practices liability coverage includes free online support through our Workplace Risk Solutions website, which includes sample forms and policies; self-audit checklists; links to federal and state legal sources; and web-based training modules that cover the prevention of discrimination, harassment and other employment claims. EPLI also includes free legal advice from Jackson Lewis, LLP, one of the nation's largest and most respected employment law firms. Jackson Lewis’ free legal hotline can provide such legal advice as the steps to take when considering terminating an employee, as well as how employment laws apply to your workplace.

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