What is EPLI Insurance and Why is it Important for Your Business?

As a business owner, you know how important it is to protect your company against unexpected events. You have insurance for your property, your products, and your liability, but have you considered protecting your business from employee-related lawsuits? This is where Employment Practices Liability Insurance (EPLI) comes into play. In this article, we'll discuss what EPLI insurance is and provide examples of covered situations.

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What is EPLI Insurance? Employment Practices Liability Insurance (EPLI) is a type of insurance policy that provides coverage for employers against claims made by employees alleging discrimination, harassment, wrongful termination, or other employment-related issues. EPLI is designed to help protect businesses against legal expenses and damages resulting from employee-related lawsuits.
Examples of Covered Situations:

1. Discrimination - EPLI insurance can provide coverage for claims of discrimination based on age, race, gender, religion, disability, or any other protected characteristic. For example, an employee may claim that they were passed over for a promotion because of their age or gender.
2. Harassment - EPLI insurance can provide coverage for claims of harassment, including sexual harassment, that create a hostile work environment. For example, an employee may claim that they were subjected to unwanted sexual advances or comments by a coworker or supervisor.
3. Wrongful Termination - EPLI insurance can provide coverage for claims of wrongful termination. For example, an employee may claim that they were terminated for discriminatory reasons or because they reported illegal activities by the employer.
4. Retaliation - EPLI insurance can provide coverage for claims of retaliation against employees who have reported discrimination or harassment or who have participated in investigations or legal proceedings related to such claims. For example, an employee may claim that they were demoted or terminated for reporting harassment by a coworker.
5. Breach of Contract - EPLI insurance can provide coverage for claims of breach of contract related to employment. For example, an employee may claim that their employer failed to fulfill the terms of their employment contract.
6. Wage and Hour Violations - EPLI insurance can provide coverage for claims of wage and hour violations, including failure to pay overtime or minimum wage. For example, an employee may claim that they were not paid overtime for hours worked over 40 hours per week.

​In conclusion, EPLI insurance is an important coverage to consider for any business with employees. It can help protect your business against legal expenses and damages resulting from employee-related lawsuits, such as discrimination, harassment, wrongful termination, retaliation, breach of contract, and wage and hour violations. It's important to work with a knowledgeable insurance professional to ensure that your business is properly protected. At GSP Insurance Group, we can help you find the right EPLI insurance coverage for your business.

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Tyler Grizzle - Partner GSP Insurance Group
GSP Insurance Group serves clients in the states of SC, GA, NC, AL, FL, TN, OH, and IN

GSP Insurance Group Headquarters
8 Buckingham Plantation Dr
​Bluffton, SC 29910