An Employment Practices Liability (EPL) policy covers your organization for allegations brought by employees alleging violations of employment law. It is designed to address an organization’s exposure to most employment-related claims, on a first and third-party basis.

In the event of an employment-related claim or Equal Employment Opportunity Commission (EEOC) charge, an EPL policy can protect your company from costly defense expenses as well as adverse judgments or settlements.

Employment risks are real and varied, and claims of wrongdoing are taken seriously in a court of law. The impact of these claims can be harmful to a company’s bottom line, regardless of their legitimacy.

Furthermore, these issues don’t have to reach a court of law to have a financial impact on your company. Administrative actions and complaints, mediations, arbitrations and settlements often prove costly.

Without an EPL policy, your company would have to not only find counsel suited to defend these claims but pay the costs out-of-pocket.

Why Your Business Needs Coverage

  1. You make decisions everyday that impact your
    employees: hiring, compensation, promotions,
    accommodating disabilities, terminations and more. Each
    of these can lead to a claim for a wrongful employment
    practice if not handled correctly.
  2. Both defense costs and settlement amounts for
    employment practice claims can have a serious financial
    impact on a company. Employment practices insurance
    is critical to protect organizations from the potentially
    large cost of employment litigation.
  3. Even an organization with good human resources
    policies and procedures in place can be sued, and the
    cost of defending a claim can be enormous. It is not
    uncommon for legal fees associated with winning an
    employment lawsuit to exceed $250,000.