Over the last decade, employment practices liability insurance has become increasingly critical for business owners who face rising threats of employee claims against them.

This insurance provides essential protection for companies when disagreements between owners and/or management and the staff result in a civil lawsuit.

Most importantly, business owners should understand that they must seek this coverage directly from their business insurance agency, as coverage for this type of loss is specifically excluded from most general liability policies.

Employment Practices Liability Insurance - Essential Business Protection

Employment practices liability insurance, or EPLI protects businesses against civil lawsuits brought by their employees.

It provides liability protection for employment-related claims such as wrongful discipline, demotion or termination, sexual harassment, discrimination, slander or libel, mismanagement of benefits, breach of employment contract, and many other claims that can arise from disputes between employees and the company.

EPLI policies offered by business insurance agencies also cover cyber liability issues as well.

In these instances, EPLI policies cover the cost of legal expenses when business owners must find legal representation against these types of claims.

EPLI insurance covers everything from lawyer fees and court costs to punitive damages and settlements, expenses that when faced otherwise could severely damage the business.

Considering that business owners facing this type of lawsuit will be responsible for paying legal costs and penalties regardless, EPLI ends up being affordable protection for something that can seriously damage any company.

The Need for EPLI Coverage Has Increased In Recent Years

EPLI coverage from a respected business liability insurance agency is recommended for any company that hires employees and is at risk of this type of lawsuit.

Previously, this coverage was generally included in a company’s general liability policy, but with the rise in these types of claims over the last decade and changes in the social climate, this risk is now excluded from most policies.

Damages from lost claims can cost hundreds of thousands of dollars today.

The only option for retaining this protection is adding a separate EPLI policy to a company’s liability insurance.

Learn About EPLI Policy Coverage In The Following Video

Click to watch the video and hear Brad Hurt, partner at Service Insurance Group discuss the importance of employment practices liability insurance and why today’s small business owners need this policy.

Service Insurance Group sells EPLI insurance policies to help local small business owners protect themselves against employment-related claims.

Employment Practices Liability Insurance Provides Critical Protection for Small Businesses

No matter what type of company a business owner is running, employment practices liability insurance should be considered required coverage if that business relies on employees.

The risk of a civil suit brought by an unhappy employee, whether their concern is valid or not, is always present and could damage the business in many ways.

An EPLI insurance policy from an experienced insurance agency can help.

With the right insurance protection, employers will have the assets they need should they face some kind of employment claim.