EPLI – Say What?

The year 2020 has been a challenging year.  The global pandemic has hit many hard, maybe no one more than the fabric of America, the businessowners.  While it would have been extremely difficult to predict the worldwide outbreak and the ongoing effects, there is another all too common threat to business that we cannot ignore. 

Employment Practices Liability Insurance (EPLI) is a hot coverage right now that each business owner should carefully consider.  In today’s commercial insurance market, most carriers offer EPLI coverage protecting wrongful acts arising from the employment process.  While this list is not exclusive the common type of claims include:

  • Wrongful Termination
  • Harassment
  • Sexual Harassment
  • Discrimination
  • Retaliation

EPLI policies could also cover other unseemly employment behavior such as:

  • Invasion of Privacy
  • Failure to Promote
  • Defamation
  • And the list goes on

According to a recent communication from Nationwide Brokerage Solutions, the Equal Employment Opportunities Commission fielded over 200,000 potential discrimination claims in 2018.  Of those complaints, more than 50% were resolved resulting in over $500 million in damages awarded to victims.  Average costs of settling out of court are estimated at $75,000 and if a case goes to a jury trial, that number triples. 

While you likely run a clean ship, inappropriate business practices are targeted, allegations continue to be made, and people make mistakes.  Consider discussing EPLI with your insurance agent to determine the availability and affordability of this very important coverage.  Be prepared for the unthinkable!  Your exposure could be greater than you think, but your coverage and your cost will be less than you predict!