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Written by Adam Miller
What Is The Difference Between EPLI and EBLI Coverage?

Companies across the country have recognized the importance of having quality commercial insurance coverage for protecting business structures, company vehicles, assets, and employees. However, it's just as important to protect the company as a whole from other kinds of damages or liability claims that stem from within the organization. In these instances, EPLI (Employment Practices Liability Insurance) and EBLI (Employee Benefit Liability Insurance) can help offer this kind of specialized protection. Today's Aegis blog post will explain how each policy works, and how they can add an additional layer of financial protection for your business.


Employment Practices Liability Insurance, known as EPLI, protects businesses by providing financial protection in the event of a lawsuit or claim stemming from issues regarding employee hiring or termination practices. For example, if a potential, current, or former employee accuses a company of discrimination, wrongful termination, harassment, defamation, workplace sexual harassment, or breach of contract, an EPLI policy can help companies with the legal costs of defending themselves in court, as well as any damages that may be awarded to the plaintiff. EPLI can also help cover attorney fees and judgments against a company that is accused of failure to hire or promote because of discriminatory or illegal practices.  EPLI is essential to have since General Liability or Excess Liability coverage would not apply in these type of lawsuits or liability claims. 


Employee Benefit Liability Insurance, or EBLI, offers companies financial protection from lawsuits and claims that stem from company errors or mismanagement regarding the administration of employee benefits. For example, if a company's Human Resources department forgets to enroll an employee or their family member with their health insurance provider, the employee could sue for reimbursement of all out of pocket medical costs that would have been covered by insurance. In addition, EBLI can also protect businesses that fail to maintain proper employee benefit records or give incorrect or false information regarding employee benefit coverage.

Does Your Business Need It?

Any business that has at least one employee can benefit from having EPLI coverage, since a single lawsuit could ruin a company by burning through financial resources, while also damaging the business reputation. It also provides broad coverage for the company, key directors, corporate management, and employees. As for EBLI, it is extremely important to carry the coverage if your business offers Group Health Benefits or any other kind of employee benefit such as Life Insurance, Disability coverage, or retirement plans. Any kind of benefits mistake made by the company that impacts employees could result in a lengthy and resource-draining lawsuit or liability claim.

Aegis Insurance & Financial Services helps companies understand the liability risks that come with hiring and firing employees, as well as with administering company benefits programs. We help clients identify potential risks, offer solutions to mitigate those risks, and create customized Commercial Insurance solutions tailored to their specific industry and unique business needs. For more information on how Aegis can help your company get additional insurance protection, contact Aegis at 713-850-7622 or fill out our online form for a free quote!

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