Employment Practices Liability Insurance
When we discuss employment practices liability insurance (EPLI), we are referring to an insurance policy which covers businesses against alleged claims by workers that their legal rights as employees of the company have been violated. In recent years businesses have seen the number of lawsuits filed by employees against their employers rise dramatically, with the average claim paid approaching six figures.
While the majority of suits are filed against large corporations, please be aware that no company is immune to such lawsuits, and more small companies are seeing lawsuits being filed against them. Recognizing this fact, now more than ever, smaller companies need this type of insurance coverage for their Arizona Business whether your company is a corporation, a partnership, or LLC. EPLI provides protection against many kinds of employee lawsuits including claims of:
- Failure to promote or employ
- Deprivation of career opportunity
- Sexual harassment
- Breach of employment contract
- Negligent performance evaluation
- Wrongful termination
- Wrongful discipline
- Wrongful infliction of emotional distress
In the current business world, monetary awards for employment-related claims for such things as defamation, discrimination, harassment, wrongful termination, which are among the various things an employee can file a lawsuit against an employer, are getting more expensive for the companies with no end in sight. As they have learned the hard way, the cost of fighting these types of allegations is soaring and can have a serious impact on the company’s finances.
When your company is looking at the cost of EPLI coverage, it really depends on your type of business, the number of employees you have, and various risk factors including whether your company has been sued over employment practices in the past.
In these types of cases, you need to ask yourself, could your company survive this type of payout? Having an EPLI Policy can pay for the costs of defending a lawsuit in court and for judgments and settlements. The policy covers legal costs, whether your company wins or loses the suit. Policies also typically do not pay for punitive damages, unless allowable by law in your state, or civil or criminal fines. Liabilities covered by other Phoenix business liability insurance policies, such as AZ workers’ compensation, are excluded from EPLI policies.
To understand just what having an ELPI Policy can do for your company, please call the experienced brokers at PJO Insurance Brokerage to discuss all of your options.