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.