Employers are legally and ethically responsible for ensuring fair and equal treatment of their employees. These requirements are laid out in various laws, regulations and industry standards, and any shortcomings can have devastating consequences for your company’s culture, workplace morale, reputation and financial future. If an employee is mistreated or your organization fails to abide by its obligations, employment practices liability claims may be filed, which could lead to devastating losses. With that in mind, your company must prioritize investing in employment practices liability insurance (EPLI).

What Is EPLI?
EPLI is an integral component of most employers’ insurance portfolios. These policies can provide crucial financial assistance in response to a current, former or prospective employee’s allegations of improper workplace conduct. Even false accusations for which you may eventually be absolved may create significant losses. Fortunately, EPLI can generally be relied on to help pay for the following:
- Legal defense
- Settlements
- Court-ordered judgments
Why Is It Important for Employers to Have EPLI?
Any organization with employees should prioritize an adequate EPLI policy. The risk of an EPLI claim being brought against your company is constant, regardless of how committed you may be to cultivating a fair and healthy work environment.
A single miscommunication or misinterpretation could lead to costly lawsuits that may inflict irreparable financial and reputational harm. For example, if the general public learns that your company has been accused of treating its employees unethically, it may push clients to support competitors. Even prospective employees who may have previously been interested in working at your organization may select a different employer.
Given such potentially catastrophic consequences, the resources and assistance made available through EPLI may be one of your organization's most important investments. Without adequate coverage, it may not be possible for your organization to defend itself and restore its good name.
What Does EPLI Cover?
Although the details of EPLI policies vary, your coverage may be able to respond to the following allegations:
- Harassment
- Sexual harassment
- Discrimination
- Wrongful termination
- Retaliation
- Improper hiring practices
- Wrongful discipline
- Failure to promote
- Negligent evaluation
- Mismanagement of employee benefits
- Invasion of privacy
Get the Right Coverage
We’re here to help. At Dorsey & Associates, our knowledgeable insurance professionals have nearly 20 years of experience helping businesses in Philadelphia and throughout Pennsylvania secure their futures with optimal coverage. Our agents can answer any questions you may have about EPLI and assist you in crafting an ideal policy.
Visit our website or call 215-713-2886 to get started today.
This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.