Employment Practices Liability Insurance (EPLI) is a coverage that most businesses should have, but don’t. EPLI bridges a major gap in an insurance package because it provides liability protection for several situations that are specifically excluded in a General Liability Policy.
- Discrimination – failure or refusal to hire or any other wrongful treatment of people based on their race, sex, religion, sexual orientation, age, disability, or other status that is protected by federal, state, or local law.
- Harassment – unwelcome conduct of either a sexual or non-sexual nature that creates a hostile work environment.
- Wrongful Termination – any actual or alleged wrongful dismissal, discharge, or termination of employment, including breach of contract.
Your reaction to bad behavior may be completely justified. It may even be a smart business decision. But, if you’re sued and have to go to court to defend yourself, the defense costs will be out of your pocket, unless you have Employment Practices Liability Insurance, and these costs can be huge.