The Importance of Employee Practices Liability Insurance

California business leaders make decisions each day on a range of issues including things like hiring, firing, compensation, promotions and the work environment.  Every one of these decisions impacts your employees and, depending on the outcome, could result in a claim related to wrongful employment practices. Protect your business with California employment practices liability insurance.

These claims can disrupt business, hurt morale, damage your reputation and lead to serious financial damages.  Thankfully, employment practices liability insurance (EPLI) can provide organizations with protection from the above risks.

Specifically, EPLI insurance provides the following to policyholders:

Coverage for Alleged Acts

EPL insurance not only protects organizations from actual wrongful acts, but alleged acts as well.  Specifically, Employment Practices Liability Insurance coverage can safeguard an organization from claims related to discrimination, harassment, retaliation and wrongful termination.

Timely Response to Lawsuits

Employees suing their employers is common, and organization will want to be prepared.  This is especially important when you consider that there is no cap on how much a jury can award that settlements in employment-related cases can easily reach six figures.

Access to Legal Help

Strong EPLI policies provide the insured with access to legal resources.  This can prove invaluable if you need advice quickly.

Risk Management Strategies

While employment-related lawsuits can arise at any time, organizations that take the time to implement basic risk controls are better equipped to avoid claims altogether.  Many insurance companies provide access to risk management training and human resources consulting.  These services can greatly reduce the likelihood that your company is sued by an employee.

Additional Protection for Your Directors and Officers

While directors and officers insurance (D&O) can defend against employment-related lawsuits, dedicated EPLI insurance is necessary for many organizations.  Having a policy that provides separate coverage for lawsuits connected to wrongful terminations, discrimination, invasion of privacy and similar employment claims ensures that the limits on your D&O policy aren’t exhausted unnecessarily.

GDI Insurance Agency, Inc is your California EPLI Specialist

Want to Learn More About EPL Insurance?  We’ve got more great information on our Research Center.

Claims in California for wrongful employment practices are on the rise and often lead to business interruptions and costly claims. In order to truly protect your organization, it’s critical to get EPLI Insurnace.  To learn more contact Grant Davis at 1-888-991-2929.  GDI Insurance Agency Inc. can help protect your business from costly employee-related lawsuits. 

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