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Written by Adam Miller
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Why Your Company Needs Employment Practices Liability Insurance

Companies across the country are finding themselves in uncharted territory as a growing number of Americans workers speak out and stand up against workplace harassment and discrimination. While many companies are taking great strides to train and educate employees on proper workplace attitudes, behavior, language, and conduct, they could still find themselves liable if an employee is harassed, treated improperly, or suffers discrimination in the workplace.

In addition to implementing workplace training, companies should also protect themselves through Employment Practices Liability Insurance (EPLI) from Aegis. In our blog post, we explain what EPLI covers and why your business needs it.

The Basics of EPLI

Employment Practices Liability Insurance is a policy that offers businesses financial protection against employee-related lawsuits and claims, including sexual harassment, wrongful termination, discrimination, failure to promote or employ, or breach of contract. EPLI coverage reimburses companies for the cost of defending themselves in court against these claims, and covers legal fees, judgments, and settlements, regardless of whether the company wins the suit or not.

How EPLI Protects Companies

While large global corporations and multi-state companies have legal teams and can better withstand the financial impact of a lawsuit or judgment against them, a small or medium-sized business can be decimated financially without the right kind of commercial insurance protection. It's estimated that the average employee claim can cost companies between $50,000 -$250,000 in settlements, judgments, and legal fees. Most small and medium sized businesses don't have those kind of liquid assets available to handle a single lawsuit. With EPLI, companies facing a lawsuit or claim don't have to divert company resources towards defending themselves in court, but can instead focus their financial resources and energy on running their business.  EPLI coverage is essential to include in a company's portfolio of business coverage, along with General Liability, Workers Compensation, and Commercial Property coverage.  

Why Companies Need EPLI

The reality is that no matter how much training, documentation, or employee vetting a company has in place to prevent workplace claims, companies can still face potential lawsuits because they cannot fully control all employee actions, words, or conduct at all times. Individual employees or supervisors might still say inappropriate things, behave poorly in work situations, or conduct themselves in a way that makes the company liable for their actions. In addition, smaller companies may not have the time or resources to create detailed training programs, HR handbooks, or employer guidelines for hiring or firing. EPLI gives companies peace of mind that their company can survive an employee claim.

Aegis Insurance & Financial Services partners with companies across the Gulf Cost region to offer top quality Commercial Insurance coverage, including EPLI. The friendly and experienced team at Aegis can create a customized business insurance package that works with your unique needs and your specific industry. Contact Aegis today at 713-850-7622 for more information, or fill out our online form for a free quote!

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