Employment practices liability insurance (EPLI) has become increasingly important for employers since the recent recession. The types of lawsuits and claims related to employment issues that EPLIs cover – like workplace discrimination, wrongful termination, and lack of compliance with the federal Family and Medical Leave Act (FMLA) – have seen a big rise post-2007. And the costs of addressing these claims without an adequate risk protection strategy can be crushing for small businesses.
EPLI, also known as employment liability insurance, is a policy that covers businesses when an employee files a complaint with the Equal Employment Opportunity Commission (EEOC) under federal laws such as Title VII of the Civil Rights Act of 1964, the Americans with Disabilities Act, and the Age Discrimination in Employment Act.
Most EPLIs are written to cover a broad range of employees’ workplace claims against a business. These include: racial discrimination, sexual harassment and sexual discrimination in the workplace, unlawful termination, age and/or disability discrimination, unequal compensation practices, and employee benefits mismanagement.
The damages awarded to victims of employment discrimination can vary according to the type of complaint, the severity of the discrimination, and even the number of people you employ.