Employment Practices Liability (EPLI) covers businesses against claims by workers that their legal rights as employees of the company have been violated. EPLI provides protection against many kinds of employee lawsuits and includes some or all of the following types of protections:
- Sexual Harassment
- Wrongful Termination
- Breach of Employment contract
- Negligent Evaluation
- Failure to employ or promote
- Deprivation of Career Opportunity
- Wrongful infliction of emotional distress
- Mismanagement of employee benefit plans
Companies should consider EPLI protection to assist them with having the proper employee handbooks and procedures in place in the workplace. These policies and procedures will be checked to ensure they meet the requirements of the law, which can be quite extensive. If the company is sued, EPLI coverage will assist with the cost and handling of the suit as well as any subsequent settlement costs.
Some examples of an EPLI claim are:
- Hostile Work Environment – A company receives a formal complaint from an employee alleging that he was subjected to a hostile work environment and sexual orientation discrimination during his employment. The plaintiff reported the incidents to the head of the company, who refused to investigate the matter. The plaintiff was discharged by the company and decided to sue his former employer.
- Defamation – The plaintiff alleges her prior company damaged her reputation and improperly interfered with her ability to obtain employment. According to the suit, the plaintiff’s previous employer had disclosed the reasons for her termination to potential employers.
- Discrimination based on Disability – An employee was out on medical leave due to an injury that occurred at work. His employer advised the employee not to file a workers compensation claim. The employee files a workers compensation claim and is terminated by the company without disability benefits.
There are many more scenarios and business activities that would be covered with EPLI. Please contact INSUREtrust for assistance with your particular EPLI needs and questions.
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