As a business, it is important to protect your operation from all types of risks. One of these that has become more common in today’s workforce is an employee suing their employer. The policies that defend against this fall under what is called Employment Practices Liability Insurance. With recent changes in society as a whole, EPLI claims have been steadily increasing. This is why it is essential to ensure your business is covered against these unfortunate situations.

What Protection Does it Offer?

No matter the size of your company, it can be exposed to lawsuits when employees feel their rights have been violated. Even if the accusations end up being proved false, there can still be costs incurred to defend against them. In fact, the research provided by determined that the average out of court settlement costs an employer $75,000.

Most policies will reimburse costs of defense, which can be large, and any settlements. Claims against EPLI can come from several different areas. Below are some examples of scenarios where this policy would be beneficial:

  • Sexual harassment
  • Hostile work environment
  • FMLA
  • Wrongful termination
  • Discrimination

Workplace training and awareness are excellent ways to help prevent such claims. However, most businesses will go through one at some point. It is critical to understand insurance options before this occurs.