3 Things You Need To Know About EPLI

Commercial insurance, risk control, risk management services

Employment practices liability insurance (EPLI) provides a form of mitigation against employment violations performed by employers or their employees. This includes violations like discrimination, wrongful termination, sexual harassment, and retaliation. In today’s media, we are all seeing a higher awareness of employee mistreatment and the consequences that can follow after.

Some critics of EPL insurance have said it does not do enough in motivating corporate America to improve the culture that breeds these types of employee mistreatment. We recommend employers and businesses protect themselves from liability claims not to dismiss responsibility or dodge blame, but to preserve the integrity and viability of your organization. Having insurance is not carte blanche to do whatever you want. Someone with car insurance is not going to crash their vehicle into other cars just because they have coverage.

Essential Facts Of Employment Practices Liability Insurance

Employment practices liability insurance is still a relatively new form of coverage for insurance companies. It is vital that organizations understand EPLI coverage, how it protects your business, and what it means for corporate culture. In this blog, we will address three of the elements of EPL insurance.

EPLI Is More Cost-Effective Than Legal Fees

EPLI is more than just wrongful termination insurance, it covers many other employment related claims. Lawsuits that address claims like harassment, termination, or discrimination can be exceedingly expensive and forever scar the reputation of any business even without a guilty verdict. Professional liability insurance like this is less expensive than the possible legal fees and is one way to maintain the public integrity of an organization.

EPI Insurance Is Not There To Protect Bad Behavior

Across the insurance industry, there are millions of cases where having coverage actually decreases the number of incidents over time. Large corporations getting this type of insurance is not a way to sweep things under the rug. It is one more path to addressing the causes of bad behavior and identifying the signs before an incident occurs. EPL insurance is not an excuse for harassment or discrimination, it is a responsible action for businesses to take to protect their employees and the company.

EPLI Serves As A Reminder

In much the same way that car insurance companies will reward good behavior with lower rates. This coverage actually motivates better behavior in the workplace by monetizing the performance of employers. With less harassment or wrongful termination claims, you will see fewer costs overall. This insurance serves as a reminder for employers and their workforce to develop practices to prevent the claims from happening. It rewards good, positive behavior in the workplace.

This Coverage Includes A Shift In Attitude

One of the ways to make this sort of behavior no longer acceptable is to make it no longer profitable. Having coverage like this in place will attract good talent and protect the reputation of forward-thinking companies. On its own, EPLI is not enough to completely change corporate culture, but it is a step forward. This is an attitude that must be adopted from the top down, from business leaders to human resources and the workforce itself.

Marie-France Gelot, SVP, insurance and claims counsel of Lockton Northeast has stated, “We in corporate America must stand up and say, ‘We do not condone sexual harassment,’ Companies must truly commit to change; they must put their money where their mouth is and create a zero-tolerance culture.”

To learn more about EPL insurance and other ways we can assist in managing your risks, contact TCOR Management today.


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