Do You Need Employment Practices Liability Insurance (EPLI) for Your Business? 

Does your business have employment practices liability insurance (EPLI)?

As a business, risk management and loss control are integral parts of daily operations and future planning. After all, minimizing the likelihood of incidents or unforeseen hurdles and implementing appropriate measures to limit resulting losses can play critical roles in your organization maintaining its mission and achieving its goals.

However, not all risks are tangible or external. Your workplace’s culture could include significant risks and exposures, as illegal or improper behavior can have far-reaching financial ramifications. Given these stakes, your company’s loss control measures should consist of recourse for resulting lawsuits, including an adequate employment practices liability insurance (EPLI) policy.

What Is EPLI?

As its name suggests, EPLI is specialized coverage that can financially protect employers from incidents in which they or their employees are accused of improper workplace practices or functions. An EPLI policy establishes a legal contract between your business and its insurance company, retaining you the right to file a claim for financial assistance should a former, current or prospective employee sue you. If approved, your insurance can help limit out-of-pocket expenses and losses arising from the lawsuit, including attorney fees, court costs, settlements and judgments.

Why Do You Need EPLI?

No organization is immune to potential employment practices liability lawsuits. Legal claims may be inevitable even if your business is meticulous in establishing behavioral guidelines and workplace etiquette, and stringent in monitoring operations or handling issues. A remark taken out of context or misunderstood could trigger catastrophic accusations, and lacking adequate coverage could leave your company without the resources to respond to the allegations or settle the dispute. False accusations can even require adequate EPLI, as without coverage, you may not be equipped to defend yourself and eventually prove your innocence.

Furthermore, while the financial losses of an EPLI lawsuit can be devastating, the reputational ramifications may be particularly irreparable. After all, if an employee publicly denounces your organization for various alleged inappropriate behaviors, such as discrimination, sexual harassment or wrongful termination, it could have a lasting impact on your ability to attract top talent, maintain your customer base or form business relationships.

Get the Right Coverage

Any organization with employees should strongly consider the merits of EPLI. Regardless of the size of your workforce or company culture, employment practices liability lawsuits represent and inherent risk for all employers, and facing such accusations without suitable coverage could destabilize your finances and jeopardize your future.

At COE Agency, our knowledgeable team is committed to helping businesses in the Athens, Georgia, area understand and secure optimal EPLI coverage. Visit our website or call 706-850-6790 to learn more or to get a personalized quote.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.