Employment Practices Liability Insurance (EPLI)
Employment Practice Liability Insurance (EPLI) covers the cost of defense, indemnity, often administrative hearings and actions aginst the claims of workers who you employ that allege their rights have been violated. Workers’ compensation policies will no longer protect the employer from workers seeking emotional distress or rights damages.
Good human resource policies and well-trained managers help reduce the risk of employment practices-based suits. But, if an employee feels he or she has been unfairly treated, they can still take legal action. Employers can be subjected to a wide range of claims. Whether they would be covered by insurance depends on the policy provisions and the specific facts of the situation, but you certainly need to consider how to best protect you and your business.
Various EPLI policies with different terms and conditions are currently available for your specific requirements . EPLI policies will generally exclude punitive damages and civil or criminal awards. An EPLI policy tailored to the company’s needs coupled with a proactive employee practice program is the best approach to reducing employee claims.
