Employment Practices Liability Insurance (EPLI)
Employment Practices Liability Insurance (EPLI) can cover lawsuit expenses when an employee sues over discrimination, harassment, wrongful termination, and similar issues. These lawsuits are increasingly common, so Employment Practices Liability Insurance is essential for many small businesses.
Laws like the Americans with Disabilities Act and the Family Medical Leave Act outline standards employers have to meet. When employers break these rules, even without meaning to, they may face a lawsuit. Employment practices coverage helps businesses handle the cost of these suits.
Employee lawsuits can be expensive. According to HR Morning, a news site for HR professionals…
- The average EPLI lawsuit settlement is $125,000.
- The median judgment against an employer is about $200,000.
- 25% of judgments are more than $500,000.
Those costs don't include hidden expenses, such as lost productivity or reputational damage.
Plus, it can be hard to defend yourself in an employee lawsuit. A million-dollar decision might be based on little more than "he said, she said" testimony from you and the person suing you.
That's why it's smart to have EPLI coverage if you have employees. It provides the funds to handle your defense and settle lawsuits quickly.