Employment Practices Liability Insurance (EPLI)

Making sure your business stays protected through all the ups and downs of legal claims is important to make sure you're standing strong and operational with a respected name. If you're a smaller or relatively new business and haven't yet set up a legal department or employee handbook, you might want to look into EPLI coverage.

What Is EPLI?

EPLI, or employment practices liability insurance, protects your company in a variety of ways against employee claims of discrimination. The most common examples include discrimination based on sex, race, age or disability. However, there's also the chance of a claim of wrongful termination, harassment or failure to promote. These claims can be set in place at the moment of someone's interview, making for a long length of time for any possible issues or conflicts to arise.

EPLI is important for every business, because claims can occur at any time, due to misunderstanding. Some individuals may also launch a retaliatory and meritless lawsuit against a company they have worked for. EPLI can help cover defense costs and judgement and settlement expenses arising from allegations of:

  • Discrimination
  • Wrongful termination
  • Retaliation
  • Breach of Employment contract
  • Discrimination
  • Wrongful discipline
  • Employment harassment
  • Sexual harassment
  • Workplace bullying
  • Hostile work environment
  • Failure to employ or promote
  • Deprivation of career opportunities
  • Negligent or wrongful evaluation
  • Misrepresentation and misclassification
  • Defamation or libel

If you lack an employee handbook, it leaves room for misunderstandings or procedures not being detailed explicitly. Without a legal department, you won't have anyone to strictly enforce and keep watch over these policies.

In addition, there may come a time when your business needs to make decisions about hiring, discipline, termination or promotion. In situations where you must make difficult decisions, affected employees may not always understand. If they decide your actions were unfair, they may take the matter before New York courts. The defense process, publicity and any judgements or settlements can affect your bottom line and even disrupt business.

With EPLI coverage, you'll have additional resources if someone within your company wants to file a motion of ill- or wrongdoing against them during their time of employment.

Benefits of EPLI Coverage

With EPLI coverage, your hospitality services will make for pleasant experiences for your advisors, employees and guests. You'll be able to greet all of your customers with a diverse staff understanding of all your needs and requests. With a happy and dedicated group of employees, your business's atmosphere will be welcoming and encouraging for everyone involved.

In addition to adding EPLI to your place of business, make sure you begin on the right foot, focusing on the interview process. Conduct background checks, create specific and detailed job descriptions, ensure every application includes an equal employment opportunity statement and employ and execute a "zero-tolerance" policy to keep everyone up-to-date and on the same page.

What to Consider When Seeking Employment Practices Liability Coverage in New York

A variety of factors go into the amount an EPLI coverage plan would cost your business. The number of employees under your administration, as well as any history of prior suits or claims, greatly influences your package cost. Established rules and practices your business currently operates under will contribute to the coverage amount you need. Additionally, the rate percentage of employee turnovers can either increase or decrease your plan, as they're an indication of how many unreported cases of discrimination or ill-treatment may have occurred.

You may also wish to consider EPLI insurance wage and hour coverage. In New York, it can be added to your EPLI policy and helps you pay for defending claims related to allegations of inadequate overtime pay. If an employee launches a lawsuit claiming you failed to pay overtime to an employee eligible for such pay under the Fair Labor Standards Act (FLSA), this coverage pays for defense costs, but typically not for settlements or judgements.

EPLI coverage may be sold as a stand-alone policy or as part of a traditional business owners policy (BOP). Some businesses also choose to seek loss prevention services as part of their EPLI strategy to reduce their risk of being sued in the first place.

How Employment Practices Liability Insurance Works in New York

EPLI runs on a "claims-made basis," emphasizing the moment that each claim references. For example, if a claim is being placed in 2018 of a discriminatory event that took place in 2016, the insurance would focus on the past event, not the time of the reporting. This fact is incredibly important to note and understand — if you have the insurance plan now but didn't at the time of the offense, the claim is valid, and your company will be seen as uncovered and unprotected. Since this is the case, you will want to secure EPLI as soon as possible, so your coverage can start.

Get EPLI Coverage for Your Business

If you’re looking for employers practices liability insurance in New York, you want the most robust coverage at the most competitive rates. Contact Kokkoris Insurance Services today for a free quote and consultation. Kokkoris Insurance Services has been helping New York-area businesses find the right coverage for more than 25 years. Our dedicated service representatives treat each client with care and take the time to get to know business goals to find the most robust coverage in line with the business’s budget.

Our team evaluates your projected exposure to risk, your current insurance products, your business structure and more. We stay on top of insurance trends and new policies and keep close tabs on all insurance companies, so we can bring you the best quotes and the matches from a variety of carriers. Throughout the insurance search process, we maintain open and transparent communication, answering your questions and addressing your needs.

Hospitality services and businesses are encouraged to contact us by email or phone. We offer free quotes and evaluations of existing coverages to ensure you receive the coverage and plans best suited to you. Keep your business clear and welcoming for the long run, today!

Get in touch with our team right away by phone or email so that we can start on finding you the right insurance solutions!

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At Kokkoris Insurance Services, we'll work to provide your business or organization with the best insurance policies and coverages in your area.

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Get in touch with our team right away by phone or email so that we can start on finding you the right insurance solutions!