What is EPLI (Employment Practices Liability)?
Employment Practices Liability (EPLI) is normally a separate insurance coverage although at times it may be included as a sub limit under the existing General Liability within a carrier’s program. However, being included as a sub limit is more of an exception than a rule therefore having a separate policy is more of the norm.
EPLI covers the insured against claims and/or lawsuits from an employee. Although many employers believe they are covered under their General Liability, this is a huge misnomer that can end up costing them thousands. The only exception here is if the the claim is a result of a worker’s injury in which therefore the Worker’s Compensation would be triggered.
Employment Practices Liability covers the employer against things like wrongful termination, sexual harassment, discrimination, prejudice, wrongful discipline, wrongful infliction of emotional distress and so forth. Whereas General Liability protects against third party claims, EPLI guards against first party claims.
Something to keep in mind is that whether the accused is innocent or guilty the costs alone to defend can be and usually are very expensive. This is where EPLI kicks in as it will normally pay for the defense and settlement, if any, as the court determines. Of course it is very important to read the specific policy as all carrier’s policies are not the same in regards to coverages and limits.
Generally EPLI can be affordable by obtaining different quotes through varying carriers that are online. Usually through an online quote or online process EPLI quotes can be readily obtained. As with any insurance it is in the insured’s best interest to inquire of different sources before making a final decision once coverage and limits are favorable.
In closing, many insureds find the value and peace of mind of Employment Practices Liability or EPLI to be well worth the cost as America has become a very litigious society.
Category: General Liability Insurance
