Employment Practices Liability
Employment Practices
Employment Practices Liability Insurance (EPL) provides wrongful employment act coverage for suits brought primarily by company employees. These wrongful acts can vary broadly, but primarily encompass:
Discrimination
Wrongful Termination
Sexual harassment
A company typically purchases EPL insurance to protect itself, its directors and officers and its management from suits brought by employees. EPL policies may also cover Third Party claims (primarily customers and clients of the insured) and independent contractors.
Any company with employees is an excellent candidate for EPL insurance. It is a common misconception that if a company is small they are immune from employment suits. In fact, many smaller companies lack the important Human Resources policies and procedures that protect them from damages awarded from wrongful employment practice litigation.
In recent years, privately held companies have been able to purchase Directors and Officers Insurance policy with EPL coverage. By combining two policies in one there is less chance a claim may fall between a gap in coverage. Sharing one limit of liability also helps achieve an economy of scale.