Employer Practice Liability
Employer Practice Liability, often referred to as Employment Practices Liability (EPL), describes a type of insurance coverage that protects businesses from lawsuits filed by employees alleging wrongful actions like discrimination, harassment, wrongful termination, or retaliation based on employment practices, essentially covering legal costs associated with defending against claims related to employee treatment within the workplace.
Key points about Employer Practice Liability:
What it covers:
Claims related to hiring, firing, promotions, discipline, compensation, benefits, and other employment-related decisions that could be considered discriminatory or unfair.
Common claims:
Discrimination based on race, sex, age, disability, national origin, sexual orientation, wrongful termination, retaliation, and harassment.
Why it's important:
Businesses of all sizes can face significant legal costs if sued by employees for employment practice violations, making EPL insurance a valuable risk management tool.