Employment Practices Liability Insurance in the Chicagoland Area and Across the Midwest

Employment practices liability insurance (EPLI) is a crucial safeguard for businesses against the legal and financial implications of employment-related disputes. Beyond financial protection, having EPLI in place also signals to employees that their rights and well-being are taken seriously, contributing to a positive workplace culture. In a litigious environment where employment-related disputes are not uncommon, EPLI acts as a vital risk management tool, helping businesses navigate the complexities of the modern workplace and mitigate the potential fallout from legal challenges. 

What Is Employment Practices Liability Insurance? 

EPLI can protect businesses and employers against claims made by employees regarding various employment-related issues. EPLI can typically cover legal costs, settlements and judgments that arise from such claims. The policy may also provide coverage for defense costs, regardless of whether the employer is ultimately found liable or not. It’s important to note that EPLI coverage generally does not cover bodily injury or property damage claims, as other types of insurance typically address those. 

What Does EPLI Cover? 

EPLI can protect against the following types of lawsuits and claims: 

• Sexual harassment 
• Discrimination 
• Wrongful term 
• Breach of employment contract 
• Negligent evaluation 
• Failure to employ or promote 
• Wrongful discipline 
• Deprivation of career opportunity 
• Wrongful infliction of emotional distress 
• Mismanagement of employee benefit plans 

Why Do I Need Employment Practices Liability Insurance? 

If you have employees, you most likely need employment practices liability insurance. Without EPLI, a company could face hundreds of thousands of dollars in legal costs and attorney fees if a case goes to court. EPLI coverage can help cover defense costs and damages related to various employment-related claims.  

What Is the Difference Between EPLI and Workers’ Compensation Insurance? 

EPLI and workers’ compensation Insurance serve different purposes within employer liability and risk management. While workers’ compensation addresses physical injuries and illnesses, EPLI addresses nonphysical disputes and legal issues arising from employment relationships. Employers often carry both types of insurance to protect themselves against various potential risks.  

Contact Pitcher Insurance Agency for all your business insurance needs. We can make coverage recommendations based on specific operations.