Why You Need Employment Practices Liability Insurance (EPL) Coverage
Unfortunately, no employer is immune from a current or former employee, or an employment candidate, filing a claim of alleged discrimination, wrongful termination or harassment of any kind. No matter which industry you’re in and whether your business is large or small, your business is at risk of a claim if you’re engaged in any of the following typical employment activities:
- Is there a chance you might promote or demote any employees this year?
- Will you be preparing and delivering performance reviews?
- Will you be giving salary increases?
- Is there a chance you will terminate or layoff any employees this year?
These activities all have the potential for a possible claim of discrimination, wrongful termination or harassment. Maybe you can’t imagine a situation in which an employee, a former employee or an employment candidate sues your business for harassment or discrimination (on the basis of, for example, age, sex, race or disability). Unfortunately, though, it can—and does—happen to businesses every day.
These days, hiring, firing and day-to-day employee management can be risky. If a claim against your business is made, you could spend valuable time and resources defending it, even if the claim is determined to be groundless. Many business owners may not realize—or may realize too late—that they have a gap in their insurance coverage.
Wage and Hour Defense Costs Coverage
You should also be prepared to defend against claims related to hourly wage calculations, overtime compensation, gratuities earned or other salary or benefits topics. With Wage and Hour Defense Costs1 added to your EPL coverage2 you’ll have coverage for payments arising from defense costs for covered wage and hour claims and suits.
Protection Against Third-Party Claims
It’s equally important to protect your business from third-party claims. Alleged discrimination or harassment against your customers, clients or vendors are covered by this optional coverage for third-party violations.
How ERIE Can Help
The EPL coverage2 you can add to your business policy covers:
- Liability damages and defense costs (within the limit of coverage) from charges brought by employees as well as applicants for employment or volunteers.
- Third-party claims brought by customers, clients or vendors (additional coverage option).
Learn More by Contacting an ERIE Agent Today
Protect your business against charges alleging discrimination, wrongful termination and harassment against employees who pose a serious threat to not only your bottom line but also to your business's reputation. EPL coverage provides affordable cost and high-value protection against serious allegations from employees.
A local Erie Insurance agent can help you choose the right coverage, which includes EPL, to help protect your business. To get a free, no-obligation quote, talk to an ERIE agent.
1Wage and Hour Defense Costs coverage is available for an additional premium when EPL coverage is purchased with a limit of $50,000 or more. Wage and Hour Defense Costs coverage is not available in New York.
2Insurance coverage is subject to limitations, conditions, exclusions and underwriting. for more information. Talk to an ERIE agent for state specific and other important policy information.
