Even in the best working environments, there are opportunities for an employee to become disgruntled. Often, the result is a complaint with the EEOC (Equal Employment Opportunity Commission) or a lawsuit. Even a small, seemingly insignificant mistake by a manager can lead to serious financial losses for your company.
Many owners think of their employees as family, but it only takes one infraction of a complicated employment law to trigger charges. Sexual harassment, wrongful termination and failure to hire or promote are all employment practices and all are excluded under your commercial general liability policy. Unfortunately, lawsuits based on these issues are becoming more and more prevalent. The Equal Employment Opportunity Commission received over 80,000 charges in 2017, and that number doesn’t include the thousands of state, local and common law claims made.
Employment Practices Liability Insurance (EPLI) is becoming a standard coverage in most small to medium sized businesses, regardless of what they do. It covers the above situations and much more.
Employment Practices Liability Insurance (EPLI)
A coverage added to a commercial insurance policy or written on a stand alone basis which provides coverage for wrongful termination, sexual harassment, American with Disabilities Act and other employment related matters.