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Employment Practices Liability Insurance (EPLI)

Manage your employees with confidence. Protect your business with EPLI.

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Spotlight on: Employment Practices Liability

Employee litigation against employers in the U.S. is on the rise.

When your business hires, fires or manages staff, it can be held legally liable for employee claims alleging wrongful acts.

Employment Practices Liability Insurance (EPLI) is designed for these risks.

This covereage can help cover the cost of defending claims of wrongful termination, discrimination, sexual harassment and other improper employment practices.

The Higginbotham Difference: Complex risks deserve custom solutions.

Your insurance needs evolve. Growth, contraction, new services – your requirements shift and your exposure changes. That’s why we believe real protection is a partnership, and it starts with a conversation.

Employee owned and customer inspired, we make caring for your business our business. We know that employee litigation against employers in the U.S. is on an upward trend. So we go above and beyond to advocate in your best interest.

If employment practices liability insurance makes sense for your business, we’ll get you competitive prices today and deliver year-round value. Because while insurance is our something, the peace of mind EPLI can give your company is our everything.

To learn more about how our values-based approach drives value for you and your business, click here.

Or visit our Insights page to learn about important employment laws to consider.

Ready to work with a partner who works as hard as you do?

Designing a sound insurance plan to address your unique risk exposure can be intimidating. We’re here to help take the guesswork out of securing your coverage. With our nationwide network of insurance carriers and deep experience, we’ll help you get the custom coverage you need and the personal service you want.

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Higginbotham’s team of experts is exceptionally knowledgeable and compassionate about delivering the best products and services available, and they go well over and above what is expected, in doing so.

Carrie B.
Program Manager, Engineering Industry

How does EPLI work?

Employment practices liability insurance can help pay the cost of defending covered allegations of employee rights violations.

Employment practices liability insurance will usually not pay for fines or penalties imposed by the court. EPLI can allow for punitive damages coverage where permissible by law. In some cases, a liability covered by another insurance policy may also be excluded from an EPLI policy.

For larger organizations and those with more employment practices risk exposure, EPLI is available as an endorsement to a directors and officers policy and as stand-alone coverage. For smaller businesses, coverage is usually available as a business owners’ policy endorsement.

In the event you, a member of your organization or your entire organization faces allegations of improper hiring, firing or management practices, this coverage can help with the cost of:

  • Legal Defense
  • Settlement Payments
  • Judgment Payments

Examples of violations EPLI can cover include:

Employment Contract Breach

Discriminatory Hiring Practices

Failure to Employ or Promote

Wrongful Termination

Sexual Harassment

Negligent Evaluation

Wrongful Discipline

Discrimination

Important Employment Practice Liability Considerations

One of the most important considerations when implementing an EPLI policy is that this coverage is typically written on a claims-made basis.

If you’re sued for an incident that occurred outside of the coverage period defined in your policy documents, your EPLI may not cover that incident.

Coverage can be extended to include acts occurring prior to the policy period as long as you have no knowledge of pending or prior litigation. Considering these types of lawsuits are often filed years after an alleged incident occurred, maintaining continuous EPLI coverage can be crucial.

In the event coverage is not continued, you should at least add tail coverage to the end of your policy period or discuss other options with a trained insurance professional.

Notable Employment Laws to Consider

The most common EPLI claims are based on allegations of wrongful termination and sexual harassment; therefore, these employment laws that govern these transgressions are good to know. 

Equal Pay Act (1963)

The Equal Pay Act prohibits paying different wages to women and men in the same role with similar responsibilities. .

Title VII of the Civil Rights Act (1964)

This provision of the Civil Rights Act of 1964 bans employment and management discrimination based on religion, national origin, sex, race or color.

Civil Rights Act (1966)

This legislation prohibits employers from making employment or management decisions based on ethnic origin or race.

Immigration Reform and Control Act (1986)

Essentially a stronger reiteration of Title VII of the Civil Rights Act of 1964, this legislation bans workplace discrimination based on national origin or citizenship of visa holders and other individuals authorized to work in the U.S.

Civil Rights Act Amendment (1991)

This amendment to the Civil Rights Act modified the law to allow for jury trials vs. bench trial in employment-related litigation and added a provision for the award of punitive damages for violation of this Act.

How much does employment practices liability coverage cost?

The cost of an EPLI policy is heavily dependent on your company’s history of litigation, the number of people you employ, your turnover rate, the nature of your business and the specifics of your operation.  

While it’s difficult to accurately estimate your policy cost without first understanding the unique characteristics of your business, we’re committed to getting you the coverage you want at a price that makes sense for your budget. 

Schedule a consultation to find out more about what Higginbotham can do for your business. 

Risk Management Services

At Higginbotham, we take a consultative approach to customer service and risk management.

Whether you have a single policy, a commercial package or many insurance policies covering multiple locations and risks, we take the time to understand your unique needs so we deliver the best coverage at the best price available.

But we don’t stop there.

Our work continues 365 days a year. We have a Day Two Services® team that works in tandem with our risk management specialists to deliver year-round value.

From help with compliance to safety audits and claims advocacy, our Day Two Services® team helps you mitigate risks, avoid costly claims and better position your operations so you can focus on what matters most: growing your business.

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Not sure where to start? Talk to someone who wants to listen.

A great plan starts with a conversation. Let’s talk about what you need.

Talk to an EPLI Specialist
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