Employment Practices Liability (EPL or EPLI) is a growing product on the insurance markets, and it’s becoming more and more important for employers to protect their organizations against employment practices suits.
What is Employment Practices Liability?
Employment Practices Liability is a part of professional liability that deals with wrongful termination, sexual harassment, discrimination, invasion of privacy, false imprisonment, breach of contract, emotional distress, and a wage and hour law violations.
Generally, EPL deals with rights protected under Title VII of the Civil Rights Act of 1964, the Americans with Disabilites Act (ADA) or 1990, the Civil Rights Act of 1991, the Age Discrimination in Employment Act (ADEA) of 1967 and the Family and Medical Leave Act (FMLA).
The Equal Employment Opportunity Commission (EEOC) interprets and enforces these laws and recognizes eleven types of employment practices discrimination: age, national origin, race/color, religion, sex, retaliation, sexual harassment, disability, equal pay/compensation, pregnancy, and genetic information.
Why Do You Need Employment Practices Liability?
Due to the evolving economic, political and legal environment, employers’ susceptibility to employment practices liability has increased dramatically in recent years. In times of economic hardship, displeased employees are much more likely to file employment practices claims as a way of receiving money from employers. Employment laws have expanded employee rights which has given rise to new causes of action which may be brought against employers and create greater rights of recovery for damages under these causes of action.
Even if you’re doing everything right, you can still be hit with an employment-related lawsuit. Employment Practices Liability provides defense and indemnity coverage for employers when they receive a complaint or lawsuit which alleges a wrongful workplace act, and protecting yourself and your organization is crucial.
For more information on why you need EPL and how you can get it, give us a call at 305-648-7070.