Why Buy Employment Practices Liability Insurance?

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The cold reality it is that a business is more likely to be sued by a current or former employee than any other type of lawsuit.  Studies have shown that a business is far more likely to have an employment-related dispute, than a property or liability loss.    In today’s litigious climate, it is critical that a business owner takes steps to prevent employment-related disputes and lawsuits.   One of those steps should be to purchase Employment Practices Liability Insurance, also called EPLI coverage.

EPLI insurance can provide coverage for many types of employee/employer disputes, including:

  • FLSA disputes or violations,
  • Claims of discrimination related to race, gender, sexual orientation or religion,
  • Breach of employment contract,
  • Claims of sexual harassment,
  • Employment related slander, libel or defamation,
  • Failure to promote, employ or deprivation of career opportunity,
  • Wrongful or excessive or unfair discipline or demotion.

EPLI insurance is affordable, with premiums starting at around $100 when combined with other business insurance policies.   Stand alone EPLI for a mid-sized company usually starts around $500 per year.    Pricing will vary depending on the type of company and number of employees.   Most EPLI insurance carriers offer options to include defense costs outside the limit of coverage and claims from 3rd parties.   A “retention”, similar to a deductible, will apply to any claims.

For a no-obligation EPLI quote, call us at 702-638-0022 or request a quote on our EPLI page.