Please ensure Javascript is enabled for purposes of website accessibility Acquiring Employment Practices Liability Insurance

Tips in Acquiring Employment Practices Liability Insurance

Employment Practices Liability Insurance (EPLI) is a type of insurance that provides protection for businesses against claims of wrongful employment practices such as wrongful termination, discrimination, sexual harassment, and other employment-related issues. It is an important type of insurance for businesses to consider in order to protect themselves against these potential claims.

When considering an EPLI policy, there are several pointers that can help business owners obtain the best coverage for their needs.

What Is Employment Practices Liability Insurance?

Employer’s legal defense costs associated with a claim of wrongful termination or other breaches of employee rights are covered by employment practices liability insurance (EPLI). Any legal fees incurred defending yourself against claims arising out of these issues are covered, as well. It is a crucial part of any comprehensive insurance package for a small company.

These allegations from employees may be more challenging to defend against for startups and smaller companies than for larger companies with established human resources departments and procedures. Employment liability claims can be quite costly for small enterprises, including medical clinics, department stores, restaurants, and construction firms.

According to Nationwide, the costs associated with employment practices liability litigation can easily reach six figures through both court awards and out-of-court settlements. Small businesses can mitigate the financial impact of employment practice litigation by purchasing appropriate insurance coverage.

What Does It Cover?

Policies covering employment practices liability are designed to cover a variety of lawsuits filed by workers in the workplace, including:

  • Age discrimination
  • Breach of employment contract
  • Disability discrimination
  • Emotional or mental distress
  • Employee benefits mismanagement
  • Privacy invasion
  • Racial discrimination
  • Sexual discrimination
  • Sexual harassment
  • Slander and libel
  • Unequal compensation practices
  • Unlawful compensation policies
  • Violations of the Family and Medical Leave Act (FMLA)
  • Wrongful termination or demotion

Discrimination, unlawful termination, harassment, wage and hour violations, third-party charges, and retaliation are among the most frequently asserted causes of action. Claims based on discrimination, harassment, retaliation, and other forms of unlawful behavior in the workplace are also protected.

The Best Methods for Obtaining the Best Employment Practices Liability Insurance

Many small businesses make the potentially disastrous decision to purchase coverage with the lowest premium.

First, they need to consult with an insurance professional or broker specializing in EPLI protection to determine their risks. Once a corporation has identified the potential wrongdoings that could affect its operations, it should have its agent or broker distribute this information to multiple markets and collect quotes.

Think about taking these measures to reduce the possibility that your business could be sued for illegal employment practices.

Avoid Bad Job Candidates

Construct a candidate-vetting procedure that would weed out unqualified people before they even get to the interview stage.

Perform Background Checks

Remember to check the credentials of everyone who applies for a job.

Define Job Descriptions

Provide detailed job descriptions outlining the qualifications and responsibilities of each employee in your organization.

Do Performance Reviews

Do performance reviews on a regular basis. Document the findings in the worker’s personnel file.

Have a Zero-Tolerance Policy

Make it clear that there will be no tolerance for any form of prejudice, substance misuse, or harassment. Have an open-door policy so that staff may report inappropriate behavior without worrying about retaliation.

Keep Good Records

Create a system to keep track of employee complaints and the company’s responses in real-time.

Write an Employee Handbook

Clarify the norms and expectations of the workplace. Include procedures for dealing with complaints and consequences. Equal employment opportunity language should also be included in the handbook.


Overall, Employment Practices Liability Insurance is a vital tool for businesses in today’s economy. By protecting your company from potential lawsuits related to employment practices, you can help ensure the financial security of your business. Be sure to read the policy carefully to make sure you are fully protected.

If you are looking for a company that provides business insurance in Conyers, GA, look no further than our services here at The Tabb Insurance Agency. We provide a variety of insurance plans and high-quality service in Conyers, GA, for all your personal and business needs. Call us today for more information about our insurance and featured coverages.