What is EPLI insurance and what does employment practices liability insurance cover? Before we answer that question, consider the following:
- Businesses are 3 X more likely to be sued by an employee than experience a fire
- The average cost of an EPLI lawsuit rose 26% over the past three years
- 7 out of 10 businesses don’t purchase EPLI coverage.
- 6 out of 10 who do not purchase EPLI mistakenly think they are protected under other policies.
Due to the litigious society we live in, employment practices liability insurance is becoming ever more important. EPLI covers wrongful acts arising from the employment process. Of these, the most frequent acts covered under an EPLI policy are: wrongful termination, discrimination, sexual harassment and retaliation. If you or your business is hit with an allegation of one of these types of acts, you are likely not covered or do not have enough coverage under your general liability policy.
Even if you are innocent of the allegations, the defense costs of fighting such claims can be massive and cause great financial harm to any company. Transferring the risk from your business to an insurance company is an affordable way to mitigate your risk as an employer.
For more information on Employment Practices Liability Insurance contact Insurance Professionals of Arizona at 480-981-6338. Don’t’ wait, because after a claim happens, it’s too late to buy insurance.