Many businesses do not have coverage for Employment Practices Liability (EPLI) and do not realize the importance of the coverage until it is too late and a suit has already been brought against them.
EPLI provides coverage for employers against suits and allegations from a potential hire to a former employee for discrimination, sexual harassment, wrongful termination or discipline, emotional distress or mental anguish, invasion of privacy, libel or slander and breach of contract.
The misconception of employers is that this will be covered under their General Liability policy. There is an exclusion under the General liability when it pertains to employees, which is why EPLI coverage is so important.
Without having EPLI coverage, should a suit or allegation by anyone from a potential hire to a former employee, the business would have to incur the costs of the attorney as well as any indemnification and possible court costs.
It is very important to review your current coverages to be sure that business is insured adequately and have the coverages needed to avoid large out of pocket expenses for non-covered claims.
If you have any questions, please feel free to call us at (561) 994-0880.