Employment Practices Liability Insurance
Employment Practices Liability Insurance (EPLI) covers companies against claims associated with employment practices, including hiring/terminating, employee workplace behavior, sexual harassment, discriminatory hiring practices, and wrongful termination.
There are many laws, federal and statewide, that requiring certain employment practices for all employers, which can leave the door open to litigation by unhappy employees or applicants. There are rules against discriminating against employees based on their age, gender, sexual orientation, race, and for many other reasons. On top of that, there are agencies that are built to help employees that have been discriminated against by their employers, which makes suing an employer even easier.
For a growing company, it is important to cover yourself for employment practices because companies become liable under employment statutes at 10-15 employees. In recent years, employment practice claims are only becoming more frequent and costing businesses more money. A huge portion of these claims happen to companies with 10-50 employees.