What is Employment Practice Liability (EPL)?
This coverage protects your business against claims of wrongful termination, harassment, discrimination, invasion of privacy, wage an hour violations and more. The coverage also includes cost of defense regardless of if the claim has validity.
Why does my business need it?
• Charges against employers for discrimination, harassment, wrongful termination, retaliation, and wage related violations are at an all-time high.
• The legal obligations of employers continues to change at a rapid pace. It’s difficult for employers to constantly be in the “know” as to how new laws affect their business.
• Layoffs, downsizing, reductions in benefits can all be used by current or former employees as proof of “adverse employment actions” to file charges.
• There has been a steady increase in litigation over the past several years. People tend to file lawsuits more regularly today, than in year past.
How do I protect my business?
• An EPL policy will provide the business with coverage for the above perils, including both defense and potential settlements. Make sure the policy is written through a reputable insurance company.
• The main concept with EPL coverage is to transfer the risk to the carrier. The average costs of defense in an EPL claim can be as much as $150,000 while some settlements can be as high as $250,000 (or higher) if a case goes to verdict.
• Have your agent provide a free no obligation quote to provide this coverage.
