Often times, companies violate their employees’ rights without even knowing it. When this happens, the company is vulnerable to have a claim made against it due to these violations. Fortunately, there is an insurance coverage that can be put in place to protect businesses in cases such as these. This coverage is called Employment Practices Liability Insurance (EPLI).

EPLI provides coverage when a business is being sued by an employee for allegedly not fulfilling their obligations as an employer based on basic employee rights, the employee contract terms, wage discrepancies, etc.  This insurance provides coverage for legal expenses that can add up during a lawsuit even if the employer did nothing wrong and ultimately protects the business’s assets.  Here are a few of the claims that are covered by EPLI:

  • Wrongful termination or discipline
  • Discrimination
  • Harassment
  • Violating the employee contract terms
  • Incorrect wage and hour calculations

As a business owner, one should remember it is imperative that there is ample coverage in place for all facets of the company to protect it in any risk situation.  A company can be sued at any time and even if the claim is deemed invalid, the company will have to pay the legal defense fees unless they have an EPLI policy.

If you don’t have EPLI coverage, your business is at serious risk!  If you would like more information on what you need to do to protect your business, contact Robert Rice at Sargeant Insurance Agency, LLC today.