Employment Practices Liability2020-10-28T14:33:07+00:00

Employment Practices Liability Insurance

Lawsuits over employment practices disputes occur frequently. You’re actually more likely to be sued by an employee than you are to have a fire at your office – even though more businesses carry insurance to protect against the fire, not the lawsuit.

The risk increases for businesses that are too small to have a human resource team. Businesses with a small staff often lack the time, energy, and expertise to resolve employee disputes before they become legal issues.

Employee lawsuits can devastate your reputation and finances. Small and medium-sized businesses pay tens of thousands of dollars to resolve this type of lawsuit.

Employment practices liability insurance (EPLI) protects your business when a worker sues over employment-related issues. This policy covers your legal costs when an employee or a group of employees claim their civil rights were violated or they were unable to complete their work in a fair environment.

Employment practices liability insurance protects your company from lawsuits related to a variety of circumstances, including:

  • Mismanagement of benefits
  • Sexual harassment
  • Wrongful termination
  • Wrongful discipline or demotion
  • Discrimination
  • Breach of an employment contract
  • Privacy invasion

A business or organization can often bundle employment practices liability insurance with directors and officers insurance (D & O), another type of management liability insurance. D & O protects a business’s board members and officers against lawsuits over decisions they made on behalf of the company that resulted in financial loss.

Together, these two types of management liability insurance provide a broad base of protection against liabilities related to hiring and firing, employee rights, investment decisions, and employee benefits. The bundle usually costs less than purchasing each policy separately.

Interested in learning more about employment practices liability insurance? At Knight-Dik Insurance, we’ll work with you to design coverage that protects your business or organization from a variety of risks, unique to you. For a free insurance premium analysis, simply contact us here or call 800-286-6353.

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