What is EPLI and What Does It Cover?

EPLI (Employers Practices Liability Insurance) protects employers from damages resulting from workplace-liability claims. EPLI originated in 1988 and didn’t take strong effect until the “Civil Rights Act” of 1991, from which it has been a coverage businesses rarely go without. Statistics show that employers are more likely to have an EPLI claim than a General Liability claim.

So what does it cover?

  • Discrimination
  • Sexual harassment
  • Wrongful termination
  • Breach of employment contract
  • Failure to employ or promote
  • Wrongful discipline
  • Deprivation of career opportunity
  • Wrongful infliction of emotional distress
  • Mismanagement of employee-benefits plans

Claim Example:

A man was fired after a co-worker complained about inappropriate comments made during a conversation with fellow employees about a Seinfeld episode that aired the evening prior. The Company cited a zero tolerance policy on sexual harassment as the grounds for dismissal. The man sued the Company saying he was wrongfully terminated and that the dismissal was a result of his age. The jury found in favor the plaintiff, and the man was awarded over $100,000 in lost salary. Punitive damages were also awarded for over ten times that amount! “PLUS Underwriters”

Odds are you are better off with an EPLI policy to protect your business with the growing trend of frivolous lawsuits.

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