As a business owner or principal, you understand that you’re required to make the hard decisions, especially when you need to resolve a serious problem in the workplace. A number of scenarios may require you to terminate an employee, which is your responsibility as the employer; however, you may be exposed to a wrongful termination lawsuit. Damages paid out in these lawsuits can be significant, putting your business at considerable risk. Employee practices liability insurance (EPLI) coverage can help you manage this risk.
Understanding EPLI Coverage
EPLI protection is designed to cover claims related to employment. A typical policy covers defense costs, damages and other legal costs related to the following claims and more:
- Wrongful termination or demotion
- Hostile work environment
- Workplace and sexual harassment, including third parties, clients, independent contractors
- Discrimination claims
- Family leave act (FMLA)
- Failure to hire or promote
Lawsuits arising from these scenarios can rack up serious expenses on your end, even if you win, so it’s important to have an EPLI policy in place.
Finding the Right Coverage
Protecting your company and its finances is crucial to short-term and long-term success. Not all EPLI insurance carriers are created equal. It’s important to find an insurer who can help you come up with a plan that addresses your specific business needs.