Every time that you interview a prospective employee, your company is at risk of an employment claim. If you choose not to hire an interviewee, he or she may allege that it was due to discrimination. If you hire the interviewee and then later fire him or her due to chronic lateness, he or she can file a lawsuit for wrongful termination.

It does not matter if the allegations are true. Without employment practices liability insurance or EPLI, your company has to pay the legal fees and any settlements that come from the claim.

What Is EPLI?

EPLI insurance is coverage for employers. It is a coverage that protects your business against claims made by employees that they suffered:

All businesses are vulnerable to claims. While large businesses tend to have employment practices liability insurance, small businesses are more prone to lawsuits.

What Does EPLI Cover?

EPLI covers wrongful acts, but not intentional acts. It is not the same as other liability insurances because it only covers the business if an employee files a claim against the company. You may be able to include punitive damages under your coverage, depending on your state.

No matter the size of your business, it is not uncommon for employees to file claims against the company that they work for. EPLI coverage can help you prevent a devastating financial loss from a lawsuit.