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What is EPLI Insurance and Why is EPLI Coverage so Important?

What is EPLI and Why is EPLI Coverage so Important

A successful business organization runs efficiently if both employers and employees are satisfied. But violation of either employee or employer leads to disruption. This shall result in conflicts in the business organization. EPLI saves the interest of both employers and employees. The full form of EPLI stands for “Employment practices liability insurance”. It puts a stoppage on the inappropriate and unfair laws prevailing in the organization. 

Increasing cases of employee lawsuits are increasing EPLI. Though knowledge of EPLI in a vast arena can only safeguard your interest. 

Employment Practices Liability Insurance

EPLI insurance is the safeguard against the interest being hampered in the business entity. This shall cover wrongful termination, sexual harassment, discrimination, invasion of privacy, false imprisonment, breach of contract. 

Besides this, it also includes emotional distress to employees and wage & hour law violations. Through EPLI the policyholder can buy insurance to protect their law from getting violated. Though the law may differ from state to state. 

It should be noted that the policyholder can get insurance benefits only on the incident on which a prior claim was made. All types of employees have been included in it be it independent contractors, seasonal employees, and leased employees. 

Moreover, it shall protect the interest of the company, its directors, and its officers. EPLI claims against small businesses are gaining much popularity. 

Coverage Under the EPLI 

There is much employee violence that gets covered under EPLI. Read below for knowing it: – 

  • Sexual harassment: – any kind of sexual violence at office premises gets covered under EPLI. No matter what the designation be it, senior managers, supervisors, coworkers, and even nonemployees can ask for their rights. 
  • Facing any kind of discrimination: – if you face any kind of unfair treatment on basis of religion, age, gender, skin color can opt for EPLI. Even you can buy EPLI on basis of disability, sexual orientation, or race too. 
  • Deceitful termination : – one of the common and major reasons for opting for EPLI. If you get terminated in the wrong manner then immediately go for EPLI

What EPLI doesn’t cover?

Apart from these above claims, it does not cover many other things. It does not include criminal or civil fines, penalties or punitive damages, property damage claims, state unemployment insurance claims, worker’s compensation claims. 

EPLI insurance cost 

This solely depends on the expansion of the business empire and the number of employees. Employment practices liability insurance costs start at about $ 500 in annual premium. 

However, if the business is of small scale then it could range from $1200 per year and up. It also includes the number of claims the policyholders are making. 

How EPLI is necessary for you?

It doesn’t matter what the size of the business is. Even if it is a small size business then you should opt for the EPLI coverage. It shall protect you from many deceitful tactics happening in your organization. Eventually, it is giving many benefits to both employers and employees.