As a business owner, protecting yourself from employee lawsuits is vital. Legal defense costs are expensive, making it essential to have adequate insurance for unexpected events.
Employment practices liability insurance safeguards against employment-related claims like discrimination, wrongful termination and workplace harassment.
What Does EPLI Insurance Cover?
This kind of coverage reimburses your company against the defense costs, judgments and settlements. It pays legal fees, regardless of the outcome of the suit. A policy of this type protects you against various employee claims, including:
- Wrongful termination
- Failure to promote
- Breach of contract
- Deprivation of opportunity
- Sexual harassment
- Mismanagement of employee benefits
- Emotional distress
Do You Need Employment Practices Insurance?
In a word, yes. Misunderstandings and mistakes happen, making adequate protection a necessity for your business. Employees are filing more lawsuits each year, and the settlement amounts continue to get higher as well. Regardless of your business size, you are at risk for claims by workers. Commercial liability policies typically do not cover these kinds of cases. The attorney and legal fees associated with employee suits are expensive whether you are at fault or not.
How Much Does This Type of Insurance Cost?
The price varies depending on the number of employees you have, your business type and your legal claims history.
Protect yourself from unexpected financial loss due to potential employee lawsuits with EPLI insurance.