Understanding The Importance Of Employment Practices Liability Insurance

Most business owners are aware that no matter how hard they try, chances are that at some point, an employee will be unhappy with something their employers has done. They may even seek to sue your company and hold you responsible for what they feel you or one of your supervisors has done against them. In order to be prepared for such an eventuality, it’s a good idea for every business owner to have Employment Practices Liability (EPL) Insurance.

Employment Practices Liability Insurance What is EPL Insurance?

Employment Practices Liability Insurance is a blanket policy that protects your business against any claims by a present employee, former employee or potential employee that deal with employee rights as determined by certain civil rights and disabilities acts of the 1960’s and 1990’s. EPL insurance covers businesses in many situations, including breach of contract, claims against your disciplinary actions, alleged sexual harassment, complaints about promotions, wrongful termination, false imprisonment, emotional distress, wage violations and more.

Why Do I Need It?

Historically, the United States has created laws to protect employees against unfair employment practices and discrimination. These laws include major acts such as:

  • The Civil Rights Act of 1964
  • The Age Discrimination in Employment Act of 1967
  • The Americans with Disabilities Act of 1990
  • The Civil Rights Act of 1991
  • The Family and Medical Leave Act of 1993

If one of your employees chooses to sue your company for violation of one of these acts, they may have a good chance of winning their case. This is exactly why Employment Practices Liability Insurance was created – to protect businesses from ruin because of the careless acts of their management.