Protecting Your Business From Workplace Claims With EPLI
Understanding EPLI and Its Role in Business Protection
Employment Practices Liability Insurance, often referred to as EPLI, is designed to protect businesses from claims made by employees, former employees, and even job applicants. These claims can allege wrongful acts arising from the employment process. Without proper coverage, even a single claim can result in significant legal costs and financial loss to a business.
At Tabb Insurance Agency, we help Georgia business owners safeguard their companies against the risks associated with managing a workforce. We work closely with each client to identify potential exposures and recommend EPLI coverage tailored to the size, structure, and nature of the business. Our goal is to ensure you have the protection you need before a claim happens.
Types of Workplace Claims Covered
Discrimination Claims
EPLI can cover claims alleging discrimination based on race, color, religion, sex, national origin, age, disability, or genetic information. These protections reflect both federal laws and state-level protections enforced by the Georgia Commission on Equal Opportunity.
Harassment Claims
Workplace harassment claims, including sexual harassment, are a common source of litigation. EPLI coverage can help pay for defense costs, settlements, and judgments related to these claims, whether they come from current employees or those who have left the company.
Wrongful Termination
Wrongful termination claims can arise when an employee believes they were fired in violation of federal or state laws, employment contracts, or public policy. Even if an employer believes they acted lawfully, defending against such claims can be costly. EPLI can help cover those defense expenses.
Other Employment-Related Allegations
In addition to the major categories above, EPLI can provide coverage for claims of retaliation, failure to promote, negligent evaluation, or invasion of privacy. Any of these can lead to costly disputes that EPLI is designed to help manage.
Why EPLI Is Important for Georgia Employers
Georgia employers must comply with both state and federal employment laws. While Georgia is an at-will employment state, meaning an employer can terminate an employee for any lawful reason, that does not prevent claims alleging unlawful reasons. Federal laws enforced by agencies such as the Equal Employment Opportunity Commission (EEOC) and state agencies give employees multiple avenues to file complaints.
In recent years, workplace litigation has continued to rise across the country. The EEOC receives thousands of complaints annually, and defending against even unfounded claims can result in tens of thousands of dollars in legal costs. Small businesses are not immune, and the financial strain of a single case can be devastating. EPLI helps protect Georgia employers from these risks, providing both legal defense and financial coverage.
Who Needs Employment Practices Liability Coverage?
EPLI is not just for large corporations. Any Georgia business with employees is exposed to employment-related risks. Even companies with strong human resources policies and employee handbooks can face claims.
Small businesses may be especially vulnerable because they often lack dedicated HR staff and legal teams. Larger businesses with multiple departments and supervisors also face higher exposure due to the complexity of their workforce. Whether you employ two people or two hundred, EPLI is an important safeguard.
EPLI and Risk Management
EPLI works alongside other types of business insurance, such as general liability, professional liability, and workers’ compensation. While those policies protect against physical injury, property damage, or professional errors, they generally do not cover employment-related claims. EPLI fills that gap.
At Tabb Insurance Agency, we believe in combining coverage with prevention. We encourage clients to follow widely recognized industry best practices for reducing the risk of employment-related claims. These include creating clear HR policies, conducting anti-discrimination and anti-harassment training, and maintaining thorough documentation of employment actions. These steps not only reduce the likelihood of a claim but can also strengthen your defense if one occurs.
Examples of EPLI in Action
Consider a small retail business in Georgia that terminated an employee for repeated tardiness. The employee filed a wrongful termination claim alleging discrimination based on age. Although the business had documented tardiness issues, the legal fees to defend the case reached over $25,000. EPLI coverage helped pay for these costs, allowing the business to continue operating without significant financial strain.
In another example, a mid-sized company faced a sexual harassment claim from a former employee against a supervisor. Even though the company had anti-harassment policies in place, the case proceeded to mediation. The settlement and legal expenses totaled more than $60,000. EPLI coverage handled the costs, and the business implemented additional training and policy updates with guidance from their insurance advisor.
Partnering With The Tabb Insurance Agency
Our team at Tabb Insurance Agency understands the legal environment for Georgia employers and the unique challenges faced by local businesses. We offer customized EPLI policies that take into account your industry, company size, and workforce structure.
Beyond selling a policy, we provide ongoing support. We can connect you with risk management resources, review your policies annually to ensure they remain up to date, and advise you on steps to maintain compliance with evolving employment laws. Our commitment is to protect your business not only at the point of sale but for the long term.
Secure Your Business Against Employee Claims
Workplace claims can be unpredictable and costly. EPLI is a valuable layer of protection that gives Georgia business owners peace of mind. With the right coverage in place, you can focus on running your business rather than worrying about the potential for costly litigation.
The Tabb Insurance Agency is ready to help you evaluate your risks and design an EPLI policy that fits your needs. Contact our Conyers office at 770-483-1800 or visit our website today to discuss your options and secure your business against employee claims..
