Employment Practices Liability Insurance

Employment Practices Liability Insurance

Employees help make your business a success, but they can also hinder it because of the liability risk they pose.

The number of lawsuits has increased over the past few years and that means that all businesses–small, large, and everything in between–are vulnerable to this kind of risk. While large businesses may have the resources to fend off such a case, small businesses will likely not be able to do the same. Commercial insurance in Plano can only carry you so far. This is where employment practices liability insurance (EPLI) can help. It is a standalone policy that covers against claims or lawsuits that are filed by employees, employment candidates regarding their status, and former employees.

What does EPLI cover?

It provides coverage for a multitude of lawsuits that are made against you and your business. The following are examples of what EPLI covers:

  • Breach of employment contract
  • Sexual harassment
  • Failure to hire or promote
  • Defamation
  • Source of emotional distress or mental stress
  • Wrongful termination
  • Privacy violations
  • Mismanagement of employee benefits
  • Wrongful demotion or discipline
  • Violation of any Acts or laws that protect groups of people

What does the EPLI not cover?

While EPLI does cover for many lawsuit possibilities, it does not cover every situation. This means there are exclusions about which you should know: violations of the National Labor Relations Act, Worker Adjustment and Retraining Notification Act, Occupational Safety and Health Act (OSHA), and the Employee Retirement Income Act, as well as workers’ compensation lawsuits. The employment practices liability insurance policy will also not cover any claims that result from criminal acts. You may also want to be wary of your computer system and servers. Privacy violations caused by a computer breach may not be covered under EPLI.

Want more information about the protection you’re getting from your commercial insurance in Plano, TX? For an inside look at your coverage, contact Tri-Star Insurance Professionals.