Employment Practices Liability

Employment Practices Liability Insurance (EPLI) provides protection for an employer against claims made by employees, former employees, or potential employees. Legislation such as the Family Medical Leave Act and the Americans With Disabilities Act, plus a growing number of job-related lawsuits and claims, have created the need for business owners to consider EPLI. An EPLI policy offers insurance protection against claims and lawsuits that are brought against a business, its officers or directors, or its employees and managers. These policies generally cover charges in the following areas:

• Gender, age and other types of discrimination
• Sexual harassment
• Wrongful termination or discipline
• Negligent compensation, promotion or hiring decisions
• Breach of contract for employment
• Emotional distress or mental anguish
• Invasion of privacy
• Libel or slander
• Employee benefits mismanagement

While some directors’ and officers’ insurance policies contain employment practices liability insurance coverage, such coverage can be limited to directors and officers, and may have greater exclusions than a standalone EPLI policy.