No business owner or manager wants to consider the possibility of facing an employment-related lawsuit. However, the reality is that these lawsuits are becoming more common, and they can devastate a business’s finances and reputation. The good news is that EPL insurance (Employment Practices Liability Insurance EPLI) can help protect your business from the risks associated with these lawsuits. In this short guide, we will explore the benefits of employer liability insurance and why every business needs it.

Employment practices liability (EPL) insurance is designed to protect your business against some of the most common employment-related lawsuits. It covers risks associated with wrongful termination, discrimination, and sexual harassment. EPL insurance applies to directors, officers, and employees; sometimes, it extends to third-party liabilities.

You should know the potential sources to understand how to cover your EPL risks. These include recruitment practices, employment applications, employment offers, employee orientation processes, annual conduct reviews, enforcing performance policies, termination, and improper documentation of the items listed above.If you answered “yes” to any of these questions, then you could benefit from crime insurance.

Employers make daily decisions that can impact their employees, such as hiring, firing, compensation, promotions, and work environment. These decisions can lead to claims of unlawful employment practices. EPL insurance protects organizations from these risks, including coverage for alleged acts, timely responses to lawsuits, access to legal help and defense costs, risk management strategies, and additional protection for directors and officers.
Research indicates that three out of five employers will be sued by a prospective, current, or former employee while in business. Defending against an employment-related lawsuit can be costly and time-consuming without EPL insurance.
EPL insurance protects against a range of wrongful employment practices and covers claims, including:

• Discrimination and Harassment
  
• Wrongful termination
  
• Employment-related misrepresentation
  
• Libel
  
• Slander
• Invasion of privacy
  
• Wrongful failure to employ or promote
  
• Wrongful failure to employ or promote
  
• Wrongful discipline
  
• Vicarious liability for intentional acts
  
• Punitive damages
  

Choosing EPL insurance is a wise decision for any business owner or manager. It protects against employment-related lawsuits, which can disrupt business, damage your reputation, and lead to serious financial damages. Many EPL policies offer the following inclusions and add-ons:

• Consultation, HR assistance, and other risk management consultative services
  
• Coverage for defence costs outside the policy limits (for qualifying risks)
  
• Third-party liability coverage (for qualifying risks)
  
• Volunteer workers added as additional insureds
  
• Extended reporting periods
  

At CMB Insurance Brokers, we can help you manage all your business risks, including employment practice liabilities. Contact us today to learn more about how we can assist you in setting up the right business insurance coverage to handle EPL claims.