Small business employment practices liability insurance

Employment Practices Liability Insurance

Employment Practices
Liability Insurance (EPLI)

Employment practices liability insurance, or EPLI, provides coverage for claims of discrimination based on age, race, gender, disability and other factors up to the limits of liability you select. EPLI may also include claims of sexual harassment and wrongful termination by employees.
When?

This coverage should be given very strong consideration when reviewing your small business insurance needs.
Why EPLI?

Many companies require EPLI because the broad scope of this type of coverage protects the business entity, employees, officers, directors, stockholders, partnerships, and newly acquired organizations from the costs of litigating suits for wrongful employment practices. Frivolous lawsuits fill our courtrooms, and it is important to expand liability coverage to protect against a litigious marketplace environment. Our policy is a "duty to defend" policy providing defense of all covered claims regardless of their legitimacy. Wrongful employment practices include:

* Wrongful refusal to employ a qualified applicant
* Wrongful failure to promote a qualified employee
* Wrongful demotion, evaluation, reassignment or discipline of an employee
* Wrongful termination of employment, including constructive discharge
* Defamation of character
* Oral or written publication of material that slanders or libels an employee or violates or invades an employee's right of privacy based on color, creed, national origin, marital status, medical condition, gender, age, physical appearance, physical or mental impairments, pregnancy, sexual orientation or sexual preference.

These limits include the following expenses:

* Defense Expenses
* Compensatory Monetary Awards
* Remedial Awards
* Judgments
* Pre- and Post-Judgment Interest

Examples:

Your business downsizes out of necessity, but the 57 year-old male executive that you let go files an age discrimination suit. Employment practices coverage protects you from a decision in his favor.

A female worker resigns after she receives a box of chocolates from her supervisor and decides to sue because the gift is construed by the worker to be harassment. The suit is eventually dismissed but not before large legal expenses are incurred. EPLI coverage can protect you from these expenses.

This section is designed for general informational and descriptive purposes only. The precise wording of each coverage is subject to specific conditions and endorsements of the actual policy issued. Always read your policy very carefully!

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