The Risk of Not Having Employment Practices Liability Coverage

The Risk of Not Having Employment Practices Liability Coverage

Employment practices liability insurance (EPLI) covers many different things, including employment related cases involving discrimination, wrongful termination and sexual harassment, among others.


If your business doesn’t have this coverage, or only has a small amount of it that won’t pay out if you get sued, you could be facing some serious financial problems.

Don’t take the risk — talk to an insurance agent to find out how much EPLI coverage you need and how much you can get for your budget.


What is employment practices liability insurance?

Employment practices liability insurance covers the company in the event that an employee sues them for employment practices such as sexual harassment, discrimination, or wrongful termination.

It is important for companies to be aware of this risk because it can result in a costly lawsuit.

If you are not properly insured, you will have to pay out-of-pocket and deal with these costs on your own.


Many small businesses don’t realize they need this coverage until it’s too late and find themselves with no option but to close their doors due to financial hardship.

These types of lawsuits often end up being more expensive than expected and make it difficult for any company to remain afloat.

Before deciding whether or not they should protect themselves against the possibility of one happening by purchasing employment practices liability protection.

Some employers may also want to purchase retroactive coverage which provides unlimited protection from the moment that employment starts.

Do I need it?

Employment practices liability coverage helps protect a company from being sued for wrongful termination, discrimination, and other employment related practices.

These lawsuits can be costly and time-consuming to defend against. If your business does not have this type of insurance, it is vital that you speak with a professional about how to protect your company.

The risk is too great to take chances on this important coverage. You never know what could happen in the workplace! It is always best to be safe than sorry.

There is no better way to safeguard your business than to ensure it has the proper protection through this form of insurance.

What does it cover?

Employment practices liability coverage protects your company from claims made against you for discrimination, sexual harassment, wrongful termination and other employment related lawsuits.

These claims can cost hundreds of thousands in legal fees, settlements and judgments.

A good insurance agent can help you understand what type of coverage may be appropriate for your business and the cost to protect yourself.

A common misconception is that many small businesses do not need such a policy because they have few employees.

However, if any employee becomes a victim of an injury on the job or develops a disability because of work duties, this coverage could become essential.

Many small businesses also think their personal assets will cover them if they are sued. However, these policies only protect assets up to $1 million in value. The excess amount must come out of the individual’s pocket.

How much does it cost?

One of the most important things to consider before starting your business is whether or not you need to buy employment practices liability insurance.

This type of coverage provides protection for your business in the event that an employee brings suit against you, alleging violations of Title VII or other federal employment laws.

The cost varies depending on a number of factors such as how many employees are employed at any given time and if there are any specific occupational risks associated with the business.

An average employer pays between $350 and $750 per year, but prices can range from less than $50 to over $1,000.

There is no way to know ahead of time what the price will be for your business; therefore, it’s best to consult a professional about this issue before making decisions about buying or not buying employment practices liability insurance.

You may find that it’s worth the cost even though your company only employs one person – especially if you do business in states where there are a lot of employee lawsuits.

It is also wise to look into the possibility of purchasing general liability insurance, which may include some provisions for employment practices liability claims.

As always, when considering any new expense, it’s important to evaluate its impact on all aspects of your company and make sure it fits within your budget.

How do I get it?

There are two types of employment practices liability insurance coverage: general and management liability. If you employ one or more employees, you need general employment practices liability insurance.

If you have management responsibility for your business, you will also need management liability coverage.
Insurance companies typically offer a range of policies with varying limits, deductibles, and exclusions.

You should purchase the policy that best suits your needs and budget as well as the needs and budget of your business. There are two things to look for in an insurance company: first, the financial stability of the company and second, whether they specialize in this type of insurance.

An insurance company specializing in these policies will likely be familiar with your industry’s specific risks.

That’s because many industries face special challenges like injuries on-site, compliance issues related to immigration status, harassment claims by customers or vendors, discrimination claims from applicants and workers alike—plus any other problems that arise when employers try to manage their workforce.


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