Employment Practices Liability Insurance
Employment Practices Liability insurance (EPLI) includes coverage for both personal injury claims and legal fees and costs related to different employment-related lawsuits, including allegations of Sex Discrimination, False Charges of Disability, and Work Injury. Additionally, EPLI covers liability claims for negligence in the workplace. EPLI is usually issued by a company's attorney general.
Most states require employers to carry employment practices liability insurance. Many of these laws apply to private employers who employ employees. In other cases, state laws only require an employer to have liability insurance on its own business. However, in most states, an employer or supervisor is responsible for carrying EPLI, whether or not their company has an employer's insurance policy.
Generally speaking, EPLI is a type of policy that will cover a person or entity against any claims made by an individual or organization. Generally, this type of insurance covers a specific amount of compensation for each claim that has been filed. This amount of compensation may vary from one state to another. The type of insurance coverage is usually determined by the type of harm or injury that resulted in an incident. For example, if an employee was harmed on the job and filed a claim, an EPLI policy may cover such expenses as medical bills, lost wages, and more. In the same way, a policy may also be issued to cover a claim if someone had been injured while visiting an employer's location.
A common misconception about liability insurance is that it means you will be responsible for paying for a claim that results from the negligence of the company's owner or manager, even if you did nothing wrong. However, employers are only responsible for a portion of the compensation that is due to their employees, so in most cases, an EPLI policy is not required if the employee has suffered a personal injury from the negligence of an employee of another business.
An employment practices liability insurance policy is an ideal way to protect your employer's insurance policy, as it will cover you in the event of claims made by an individual or organization against the business. This is especially important if your employer has a long-term relationship with another organization or corporation that may be liable for the injury, as some employees may be able to sue their employer, since there is no personal injury or damages at issue involved in these cases.
If you are an employer and you do not currently carry EPLI, consider taking steps today to get it as soon as possible, before your employer's insurance policy expires. You never know when a claim might be filed against your company that can cost thousands or even millions of dollars to resolve. By purchasing EPLI, you can provide your employer with peace of mind knowing that the financial burden of any claims won in court will be covered in the case of an injury or wrongful death lawsuit.