Employers can face a number of lawsuits and claims related to their business practices, and don’t even have to be in the wrong to be sued. Some of the most common complaints are centered around wage and hour violations—including wage and overtime calculations—and job classifications.
Employment Practices Liability (EPL) insurance provides coverage to businesses against claims of:
- Discrimination (racial, gender, or age)
- Violation of the Family and Medical Leave Act
- Wrongful discipline
- Wrongful failure to promote
- Wrongful termination
- Wrongful infliction of emotional distress
There are exclusions that are important to note. For example, most EPL policies won’t cover third-party bodily injury and property damage, employees’ work-related illness and intentional or dishonest acts.
Why is this type of insurance necessary?
In the last 20 years, EPL lawsuits have increased 400%. This means the odds of your practice experiencing an EPL insurance claim are high.
Preventative efforts—such as knowing EPL trends to avoid, creating and enforcing strong policies, and training your employees—provide little protection. They can lower risk, but not eliminate it. A typical EPL policy will give you additional legal and financial support you’ll need if your practice is in the middle of a lawsuit.