AVRECO - Your Specialty Risk Professionals

What is EPLI?

EPLI, or Employment Practices Liability Insurance, is an insurance product that covers employers for defense costs and settlement amounts that they become obligated to pay as a result of claims by employees and other third parties. (Anyone who is a non-employee and comes into contact with your employees - i.e. clients, customers, or any visitors to your business premises). These claims would be for any Wrongful Employment Practice, including but not limited to wrongful termination of an employee, harassment, or discrimination of an employee or third party.

Who Needs EPLI Coverage?

Every employer in the world is open to these claims. If you have employees then you have the exposure. The US leads the world in providing protection of employees and their rights. This leads to complaints from employees via various governmental agencies and possible litigation against employers who do not follow the high standard working conditions that today’s employees expect.

What is a Typical Claim?

The typical claims today allege that an employee was terminated because of their age, race, sex, or religion. There are also claims alleging that an employee was harassed or placed in a hostile working environment. Claims of discrimination made by third parties (against companies due to employees treating them incorrectly) because of their age, race, sex or religion (or other protected classes) are also fairly common.

All these above examples are extremely expensive to defend and ultimately settle. These claims are on the increase in frequency as well as severity. An important thing to remember is that the allegations do not have to be true. A company may have done nothing wrong, but it will still cost you thousands of dollars to prove this. When this research was completed, two thirds of US companies had incurred an EPL claim in the past twelve months and only one third were actually insured against such claims.  

Interested in learning more? Contact Linda Deiss at (312) 294-5475 or or Peter Upjohn at (312) 294-5621 or .