Businesses Keep Asking About EPLI

Employee Practices Liability

Why Businesses are Concerned with EPLI?

Employee Practices Liability Insurance covers companies against claims by employees who believe that their rights have been violated.

In the past few years, the number of lawsuits has been rising; although most cases involve larger corporations, companies of all sizes are exposed to the risk.   EPLI Insurance is offered as a coverage item on most Commercial General Liability Insurance Package policies; however, we have found that as the number of cases has increased, many carriers are reducing the available limit of coverage for this very valuable coverage.

HDA Insurance offers an EPLI Policy as a stand-alone policy offering protection against the following types of claims:

  • Sexual Harassment
  • Discrimination
  • Wrongful Termination
  • Breach of Employment Contract
  • Negligent Evaluation
  • Failure to Employ or Promote
  • Wrongful Discipline
  • Deprivation of Career Opportunity
  • Wrongful Infliction of Emotional Distress
  • Mismanagement of Employee Benefit Plans

These policies are offered on an annual term and the premium is dependent upon the type of business, number of employees and claims history.   Although the insurance is very important; equally important is offering professional training to company managers to minimize possible issues which may lead to a claim.

Applications for quotes are very simple and since this risk is fairly easy to assess, a premium indication can be offered within 1 business day in most cases.