When it comes to protecting your business, you have to consider all of the different insurance options available. One of the most critical insurance coverages is employment practices liability insurance. EPLI is an insurance that protects against allegations of wrongful practices. Here is what you need to know about EPLI.
What Is an Employment Practice?
Employment practices include patterns that occur in workplace conditions and hiring. The EEOC or Equal Employment Opportunity Commission creates rules and regulations for business practices. They decide what is appropriate and what is inappropriate. Unacceptable practices include wrongful termination, discrimination or sexual harassment.
For example, if a potential employee claims that you failed to hire him or her due to race, ethnicity or gender, you could face serious ramifications.
What Does EPLI Cover?
If an employee or potential employee alleges that your company discriminated against him or her, then you could face a lawsuit. EPLI insurance is there to protect your company against these lawsuits. Don’t mistake it for employers liability. Employers liability protects you from financial loss due to an ill or injured worker.
Regardless of the type of business you run, you need to be protected against various lawsuits. Employment practices liability coverage helps with the legal costs associated with allegations against your company for wrongful practices.