Personal Guide to Employment Practices Liability Insurance (EPLI)

Personal Guide to Employment Practices Liability Insurance (EPLI)

Insurance has expanded to various fields and sectors in recent times and is no longer restricted to just, home or auto. The field has diversified itse

Insurance has expanded to various fields and sectors in recent times and is no longer restricted to just, home or auto. The field has diversified itself into businesses sector as well. Business is composed of employers and employees who are further connected to numerous liabilities. Also, the businesses today are more multifaceted and incur large costs in legal defense. A small innocent mistake can also lead to a major lawsuit against a business or an employer. These suits can be real or fake but can equally cause harm to the image of the company.

Normally, it is considered that a general Insurance would work out in such matters but it is not so. General insurance or workmen’s insurance apply to business, small or medium for compensation related to illness or physical injuries inflicted on an employee. This is where the “Employment practices liability insurance or EPLI” ventures to aid the employers. EPLI helps employers to protect them against the court cases filed by the employees. These court cases settlements could turn out to be quite costly, even if they do not reach the court. EPLI generally covers the professional liabilities like discrimination’s, unlawful terminations, defamation, sexual nuisance, vengeance, etc. EPLI provides an overall coverage to an organization against the claims made by employees that are part-time, full-time, non-permanent, hired, and/or contractors, customers.

“Professional Liability” is another category of insurance similar to EPLI. Technically, the secondary term applies to professionals such as architects or engineers, which further supports them to cover legal fees, court settlements, and related costs. Errors & Omissions insurance is also available for accountants, realty agents, and consultants. This insurance covers any breach of agreements, omissions and/or errors.  You can read more about the difference between Professional Liability vs. Errors & Omissions Insurance here.

The major aspect of these above-mentioned insurances is to protect the business from financial damages due to which a company can go into losses. Also, it shields from the unforeseen error or negligence to a customer. Lately, the number of such cases has augmented around the country and these lawsuits cost millions. Recently, some laws have been introduced like American’s with disabilities and Family Medical leave Act that have made the people more aware in respect to their rights, so even a small mistake can lead to disaster for a firm. Also, the Civil rights act 1991, allows employees to request trial and claim damages. The work dynamics have changed a lot creating a new relationship between employee and employer. Unlike before, these trials attract huge publicity from media and further add to the worries of employers. It has been found that sometimes the claims are baseless and hold no truth but still fighting to prove it involves huge expenses.

But at Sandy’s Employment practices liabilities policies are totally based on claims basis. Defense costs take on much of the cost which is included in the policy that is offered. This is an important aspect of one’s business and must be considered seriously when searching for a policy. Sandy has received an excellent rating for its services and is always available in dire times. The policies vary advertently (annual, semi-annual, quarterly) and are fabricated to suit the requirement of the company.