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Employment Practices Liability Insurance (EPLI)

Employment Practices Liability (EPLI) is a growing product in the insurance market.  EPLI coverage grew out of the increased risk of claims and litigation related to employment practices.   EPLI deals with wrongful termination, sexual harassment, discrimination, invasion of privacy, false imprisonment, breach of contract, emotional distress, and wage and hour law violations.

Securing this type of policy can protect business owners against employee suites for rights protected under:  Title VII of the Civil Rights Act of 1964, The ADA (Americans with Disability Act) of 1990, the Civil Rights Act of 1991, ADEA ( Age Discrimination in Employment Act) of 1967 and Family and Medical Leave Act (FMLA). Due to the current economic environment, the risk of exposure to liability in the employment practices context is greater than ever.  The EEOC received more than 95,000 charges in 2008.  The rise in job loss will likely lead to a larger rise in lawsuits related to employment practices.

Employers can obtain coverage for employment practices liability by purchasing a stand-alone policy such as an EPLI policy or by endorsement to an existing policy, such as a CGL or D&O policy.