What is EPLI and Why You Need It

More companies are purchasing EPLI now than in the last 10 years because employees are becoming more aware of their rights. But, what exactly is EPLI?

EPLI stands for Employment Practices Liability Insurance. EPLI coverage is a type of errors and omissions insurance.

EPLI protects your company against certain employment-related claims filed by employees. It covers claims based on allegations of harassment, discrimination, wrongful termination and similar acts.

Claims alleging discrimination and other unlawful employment acts are some of the most common types of claims filed against businesses.

EPLI coverage may be written by itself or combined with other coverages. It is often written in conjunction with directors and officers liability coverage as part of a management liability policy. It may also be added via an endorsement to a commercial package policy.

EPLI coverages are written on a ‘per claim’ form and include a limit for each claim, an aggregate limit, as well as a self insured retention limit. For a more comprehensive list of coverages and common exclusions, refer to this article from The Balance. Currently, the most common charge alleged against former employers was retaliation; followed by race, sex, and disability.

EPLI claims aren’t preventable, but there are steps that a company can take to minimize claims. Employers should have approprate policies in place and procedures that comply to keep pace with federal and state legislation.

Contact an agent at Professional Underwriters to discuss your company’s EPLI needs today.