EPLI (Employment Practices Liability Insurance) is a type of insurance coverage that provides protection to employers against claims made by employees alleging various employment-related violations. These violations may include discrimination, harassment, wrongful termination, retaliation, breach of employment contract, and other similar claims.
EPLI policies typically cover the costs associated with defending against such claims, including legal fees, court costs, and settlements or judgments awarded to the plaintiff if the employer is found liable. Additionally, some policies may offer coverage for administrative proceedings, such as investigations by government agencies like the Equal Employment Opportunity Commission (EEOC).
Employment-related claims can be financially and reputationally damaging to businesses, regardless of their size or industry. EPLI coverage helps mitigate these risks by providing financial protection and support to employers facing employment-related lawsuits or claims. Many employers, especially those with a significant number of employees or in industries with higher risks of employment-related litigation, choose to obtain EPLI coverage to safeguard their businesses and assets.
Don’t hesitate to contact Murphy Insurance at 800 222 8711 or submit an inquiry via our Contact Us form to learn about our EPLI (Employment Practices Liability Insurance)
Employing one or more individuals increases the likelihood of facing an employee lawsuit, regardless of your business’s size or structure. Small businesses, including family-run ones, are equally susceptible to such legal challenges as larger corporations.
Most managers gauge their legal vulnerability by their perceived competence as leaders, assuming that treating employees well shields them from lawsuits. However, if a firm has more than two employees excluding spouses, legal risks arise regardless of managerial perception.