EPL is designed for businesses to mitigate exposure to employment-related lawsuits and protect businesses from claims made by employees against employers regarding a violation of their legal rights.
Who Is Employment Practices Liability Insurance For?
In today’s litigious business environment, there are many instances in which employment practices liability insurance is required. Employment-related risk begins the moment an applicant walked into the door or visits the “Careers” section on your website. There are many illegal interview questions, and the applicable law may vary among different office locations.
Why Do You Need EPLI?
Employment practices liability insurance protects your business in a variety of ways. There are many reasons why the number of harassment claims seem to be constantly increasing; it is certainly not a coincidence and correlates with broader societal changes.
Without EPL coverage, you are exposing your business to not only attorney’s fees defending the claims but the potential for large financial awards and settlements.
What Does EPL Insurance Cover?
Generally speaking, employment practices liability policies will cover the costs of defending your company against lawsuits, settlements and judgments. As long as the act that was committed is not illegal, the legal costs will be covered regardless of whether the case is won or lost.