EPLI
• Sexual harassment
• Disability and accommodations
• Equal opportunity
• Employee discipline
• Termination
• Performance evaluations
• Internet usage / employee privacy
• Leaves of absence
• Internal job postings
• Hiring and interviewing
• Discrimination
• Resolution / arbitration
EPLI will protect your company against a lawsuit or pay for a claim . As costs for litigation and damage awards climb , experts predict that employment liability will only become more complex . As a result , it is critical for business owners to understand their exposures and options for managing risks .
Most employers are not prepared to absorb the risk of loss from such employment practices claims . When evaluating and selecting insurance policies , companies should review the wide range of coverage and the adequacy of limits . They should understand who controls the claims handling process — the insured or the insurer . Selection of an appropriate policy for your company ’ s needs can be difficult and should be reviewed carefully .
EPLI is not meant to replace sound employment practices . In fact , most insurance companies will not insure a company unless it has some basic employment practices in place . What constitutes best employment practices ? This would include employee handbooks , post-incident investigation practices , and arbitration or mediation policies . These are some of the major items that insurance companies expect an employer to have when applying for an EPLI policy . You should be prepared for the insurance company to scrutinize all of your HR functions . Also , recent employment lawsuits , size of company , geographic location , and type of business or industry all affect the availability and cost of insurance .
Here are some of the most frequently asked questions about EPLI :
IS EMPLOYMENT PRACTICES LIABILITY THE SAME AS PROFESSIONAL LIABILITY INSURANCE ?
There is a difference between Professional Liability Insurance and EPLI . Professional Liability Insurance covers a business owner for third-party claims of negligence . For instance , if your business failed to complete a service , E & O insurance would come into play . EPLI covers employment-related claims , not client or third-party claims .
DO YOU NEED EPLI IF YOUR BUSINESS HAS GENERAL LIABILITY INSURANCE ?
It ’ s important to remember that employment practices are not covered under General Liability . General Liability covers third-party bodily injury or property damage . EPLI , however , covers in-house claims ( not third-party ) and does not cover physical harm or property damage .
IS EPLI THE SAME AS EMPLOYER ’ S LIABILITY INSURANCE ?
Do not be confused . Though they have very similar titles , Employment Practices Liability Insurance is very different than Employer ’ s Liability
Insurance . Employer ’ s Liability Insurance covers claims of work-related illness and injury due to an employer ’ s negligence . EPLI , on the other hand , covers claims regarding an employer ’ s treatment of employees and potential employees .
Employer ’ s Liability Insurance usually falls under Workers ’ Compensation Insurance . And , as mentioned before , ELPI is typically a stand-alone policy .
HOW MUCH DOES EPLI COST ?
EPLI costs can vary greatly depending upon the business . On average , annual premiums range from $ 20 per employee to $ 100 per employee , per year .
Here are the biggest factors that affect the cost of EPLI insurance :
• Number of employees
• Rate of employee turnover
• Employment procedures
• Past claims
• Desired amount of coverage
• Desired amount of deductible or self-insured retention ( SIR )
As expected , the more employees you have , the greater your risk of an employment lawsuit . So , most policies are primarily based on the number of employees your company employs at any given time . The other factors are then considered to form a complete risk profile for underwriting your policy .
Don ’ t hesitate to reach out to us with any questions you may have regarding bringing EPLI into your workplace . +
Kathy has been a lifelong resident of La Porte County . She graduated from Westville High School , and later Purdue University where she earned a bachelor ’ s degree in Organizational Leadership and Supervision . More recently , she earned her MBA from Purdue University in 2011 . Being a lifelong learner , Kathy achieved her CSA ( Certified Senior Advisor ) designation in 2004 , her LUTCF ( Life Underwriting Training Council Fellow ) in 2008 , her CPCU ( Chartered Property Casualty Underwriter ) designation in 2016 and the AAI ( Accredited Advisor in Insurance ) in 2022 . Active in the community , Kathy is involved in leadership roles in several organizations including the La Porte Chamber of Commerce , Lubeznik Center for the Arts , La Porte Rotary Club and Women in Leadership .
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