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What do Businesses Look for in Their EPL Insurance Coverage?

What do Businesses Look for in Their EPL Insurance Coverage?

One of the most common insurance coverages that businesses seek out these days is EPL Insurance, or Employment Practices Liability Insurance. With the increasing cases of litigation coming from employees based on claims or acts of discrimination, harassment, retaliation, etc. it’s smart to have an EPL Insurance policy in place. By protecting themselves financially, your clients will be covered for defense costs, settlements, and other court fees, should they find themselves facing a lawsuit.

Unlike purchasing a general liability policy, EPL policies are complex, and business professionals look for certain characteristics when deciding what policy to buy. So what exactly is it that businesses look for in their EPL Insurance coverage? The following are a few ideas.

A reasonable deductible. For most business professionals, investing in EPL Insurance will only be worth their investment if the deductible is a reasonable amount, so that the company can actually use the insurance when and if a claim is filed against it.

A broad definition of “wrongful employment practices”. When businesses look to invest in an EPL Insurance policy, they want to know that they are getting comprehensive coverage against any type of EPL claim that might arise, including wrongful termination, sexual harassment or other unlawful workplace harassment, violation of federal, state, local or common laws concerning employment or workplace discrimination, and more. Most businesses understand that even if they are not at fault for an EPL claim, the claim alone could result in costly litigation.

“All risk” coverage. Many EPLI policies exclude coverage for claims brought under most federal statutes. Business owners want to know that their coverage includes FMLA, FLSA, defamation, and more.

These are just a few of the important characteristics that business decision makers look at when determining what EPL Insurance Coverage is best for them. At PLRisk Advisors, we offer clients in all classes of business a competitive EPLI product designed to cover legal fees, settlements, and damage award that result from EPLI claims. Please contact us today to learn more at (855) 403-5982.