Employee Practice Coverage

You trust your employees. You know they are going to do great work for you. They are the face of your company, after all. Why do you need to think about employee practice coverage, then? Called employment practices liability insurance (EPLI), this type of protection is very important for nearly all companies today. It helps cover your business from claims those well-supported workers may make against your company.

Your Employees Wouldn’t Do That

The fact is, mistakes happen. Miscommunications happen. Sometimes false claims happen, too. With employee practice coverage, you’re able to have financial protection in place just in case something goes wrong, and that puts your business at risk.

It can happen to all companies. Claims may involve situations such as:

• Sexual harassment
• Negligent evaluation
• Wrongful termination
• Wrongful discipline
• Discrimination of all types
• Failure to promote or employ
• Deprivation of career opportunity
• Wrongful infliction of emotional distress
• Poor management of employee benefit plans
• Breach of contract

There is an increasing number of lawsuits filed by employees against their employers for reasons such as these. Most companies do not set out to end a contract for an employee for the wrong reasons. Most companies have strong sexual harassment policies in place. Yet, when a lawsuit and a claim like this occurs, it can create costly consequences for your business. That’s why it is important to choose financial protection to minimize those potential losses.

What Does This Coverage Do for You?

It can help you in several ways. First, it helps you by providing legal defense for claims and lawsuits filed against your company. This is a critical factor because it can create a situation in which your business has to spend significantly to defend itself, even if the claim is not valid.

Further, if a claim goes through, a judge orders a judgment, or the company needs to settle the claim to rise further exposure, it becomes critical to have this type of financial coverage available. It can help to pay for those losses, up to the amount of coverage you have.

There is no company immune to these risks. There is simply no way to protect against all claims. Yet, with employment practice coverage, you can reduce at least some of the risk of financial loss from those claims.