What You Need To Know About Employment Practices Liability Insurance

Even an employer with the best of intentions can become the subject of a lawsuit.

Lawsuits by employees are the biggest source of litigation against US entities (Beazley), making it essential for companies to protect themselves against lawsuits. This is where Employment Practices Liability Insurance (EPLI) can offer major financial protection for your company.

What is covered

EPLI is a benefit that protects your company against lawsuits that current, former, or potential employees could file against you, including:

  • sexual harassment
  • discrimination
  • wrongful termination
  • defamation
  • retaliation
  • many more employment-related issues

EPLI does not include general liability, injury, and wage and hour claims since other types of insurance cover these events.

Who is covered

Because wrongful employment practices lawsuits can be costly, all Nextep clients are covered by a $1 million EPLI policy to cover legal expenses and settlements, with a $25,000 deductible.

We’re happy to provide this protection to our clients and have seen it help several companies in situations that could have had serious financial consequences.

Even employers who try to do everything right can (and do) get hit with costly claims, so it’s vital to have the protection for your company in the event that it happens. That’s why we make it mandatory coverage for all of our clients.

I have a claim. What do I do?

First, don’t panic! If you’re a Nextep client, you’re covered and we’re here to help.

If you receive, or even think you may receive a covered claim, contact your HR Business Partner at Nextep right away. Our experts will walk you through the next steps, give advice on how to handle the situation, and assist with any necessary paperwork.

In addition to the legal aspects of the claim, there will of course be the human aspect to consider, including staffing, morale, and company policies and practices. Our HR experts have experience with all of these aspects and are ready to help you with the always-changing demands of today’s workplace.

EPLI is just one of the ways we can help you create a great workplace for your people, while also protecting your company. To learn more about being a great place to work, check out our recent blog!

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