If you think an employee lawsuit claim will never be made against your organization…think again. According to the U.S Equal Employment Opportunity Commission, over 90,000 charges of workplace discrimination have been filed with the EEOC in each of the past five years.
Employment related claims impact companies of every size, in every industry. An employment practices liability risk management policy provides peace of mind with essential coverage to protect organizations from claims that may potentially harm reputations and cause financial hardship.
Employment Practices Liability Insurance, abbreviated as EPLI, covers businesses against claims by employees that feel their legal rights as employees of the company have been violated.
EPLI provides protection against many kinds of employee lawsuits, including but not limited to:
- Sexual harassment
- Wrongful termination
- Breach of employment contract
- Negligent evaluation
- Failure to employ or promote
- Wrongful discipline
- Deprivation of career opportunity
- Wrongful infliction of emotional distress
- Mismanagement of employee benefit plans
The cost of EPLI coverage depends on your type of business, the number of employees you have and various risk factors. The policies will reimburse your company against the costs of defending a lawsuit in court and for judgments and settlements. The policy covers legal costs, whether your company wins or loses the suit. Legal costs only can fast reach $100,000 of dolllars.