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What is Employment Practices Liability Insurance
Employment Practices Liability Insurance (EPLI) offers critical shields for employers against claims brought by employees alleging wrongful practices in the workplace. In Wisconsin, this coverage is crucial for shielding businesses from the potentially devastating financial impacts of costly litigation and judgments.
How Does Employment Practices Liability Insurance Work?
Employment Practices Liability Insurance (EPLI) provides an additional layer of protection beyond your existing workplace policies and procedures in Wisconsin. Coverage kicks in when the measures you have implemented are inadequate or breached.
Here's how it works:
- You establish employment policies, training programs and preventive measures as your frontline defense against employment-related claims and lawsuits in your Wisconsin business.
- However, preventive measures have limitations in defending against allegations of misconduct, discrimination or regulatory violations.
- If your Wisconsin company faces a major employment-related claim or lawsuit, an EPLI policy provides coverage for the resulting expenses and liabilities.
- When a covered claim occurs, the EPLI insurance covers costs like legal fees, settlement expenses, judgments and regulatory fines related to your Wisconsin-based operations.
What Does Employment Practices Liability Insurance Cover?
Employment Practices Liability Insurance (EPLI) provides coverage for a wide range of employment-related claims brought against an employer by current, former or prospective employees. Here are some of the common claims typically covered under an EPLI policy:
Discrimination
Claims of discrimination based on protected characteristics such as age, race, gender, religion, disability or national origin, including claims of disparate treatment, harassment and failure to accommodate.
Wrongful Termination
Claims alleging an employee was terminated illegally or in violation of an employment contract or labor laws.
Retaliation
Claims an employer retaliated against an employee for engaging in protected activities, such as filing a discrimination complaint or whistleblowing.
Sexual Harassment
Claims of unwanted verbal or physical conduct of a sexual nature
Failure to Employ or Promote
Claims an employer improperly failed to hire or promote an individual based on discriminatory reasons.
Defamation
Claims an employer made false statements, harming an employee's reputation.
Invasion of Privacy
Claims an employer improperly accessed or disclosed an employee's private information or conducted improper surveillance.
Negligent Evaluation
Claims an employer provided inaccurate or misleading information during an employee's performance evaluation or reference.
Breach of Employment Contract
Claims an employer violated the terms of an employment contract or agreement.
What is Not Covered?
Employment Practices Liability Insurance (EPLI) typically does not cover criminal actions, intentional wrongdoing or violations of employment laws committed with knowledge or intent. EPLI may exclude coverage for bodily injury or property damage claims, as general liability insurance usually covers such instances. Certain types of employee disputes related to workers' compensation or breach of contract, may fall outside the scope of EPLI coverage. It's crucial for businesses to thoroughly review their EPLI policies to understand the specific exclusions and limitations in coverage.
How Much Does Employment Practices Liability Insurance Cost for a Business?
The cost of Employment Practices Liability Insurance (EPLI) for a business varies based on its size, industry and coverage needs. Small businesses generally face lower premiums due to reduced risk but may pay relatively higher rates. Larger businesses usually incur higher premiums due to increased risk but benefit from negotiating power. Industry differences also affect costs, with higher-risk sectors facing higher premiums. Other factors include location, turnover, claims history, risk management and coverage options.
Why Choose BenePac for Employment Practices Liability Insurance?
With over 40+ of expertise in delivering employee benefits and insurance solutions, BenePac is the ideal choice for Employment Practices Liability Insurance. Our tailored approach ensures your insurance policy matches your business requirements. Unlike generic options, we conduct thorough risk assessments and operational analyses to craft a package with optimal coverages and limits. Whether you operate a large corporation or a small business, BenePac offers affordable solutions to provide financial security and peace of mind.