EPLI 101: What Business Owners Should Know About Employment Practices Liability Insurance

Protect your business from unexpected – and significant – expense with this coverage.

We live in the age of litigation. People sue because their coffee is too hot or because their beer didn’t turn their lives into a tropical paradise. As a business owner, you’ve undoubtedly worried about how a single lawsuit could impact your business. And you’ve likely been relieved to put insurance coverage in place to protect all of your hard work. Have you considered stepping up that protection through employment practices liability coverage (EPLI)?

EPLI coverage is designed to protect your business in the event an employee tries to sue you. It provides you with the financial backing to defend yourself in court without burdening your business with the expense. When would an EPLI policy come in handy? You could use it if an employee sues for:

  • Wrongful termination
  • Failure to promote
  • Wrongful discipline
  • Invasion of privacy
  • Breach of contract
  • Discrimination
  • Sexual harassment
  • Mismanagement of employee benefits
  • Libel/slander
  • Mental or emotional distress

Clearly, there are quite a few occasions in which an EPLI policy can come to the rescue. Without it, a single lawsuit could create a major financial burden for your business. With it, you can rest easy knowing your business is ready to face any employee litigation, reasonable or otherwise.

You can get a stand-alone EPLI policy or purchase a business owner’s policy (BOP). The BOP will include EPLI protection up to a certain sum. If your business is at risk for surpassing that amount, an additional EPLI policy can give your business the financial defense it needs. A knowledgeable insurance agent – like the ones at Rothstein Insurance – will help you evaluate your exposure and put the proper policies in place.  

If your business isn’t currently protected by an employment practices liability policy, we can help. The team at Rothstein Insurance has years of experience putting the best EPLI coverages in place for businesses in California and Hawaii. Be ready to defend your business against employee litigation. Contact us today.

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