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Florida Pool Pro
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• December 2014
By David Griffiths, Insurance By Ken Brown /
What is EPLI Insurance?
INSURANCE UPDATE
Employment Practices Liability Insurance (EPLI) covers companies against
lawsuits or claims filed by employees, former employees and employment
candidates. The insurance coverage protects the company, its directors,
officers and other employees. A company can use this type of insurance to
cover expenses associated with employee rights violations, such as alleged
acts of discrimination and wrongful termination.
Types of Lawsuits and Claims EPLI Insures
EPLI insures against claims of discrimination (based on age, sex, race,
religion, color and national origin), sexual harassment claims, wrongful
termination, infliction of emotional distress or stress and breach of contract,
among others. The insurance covers claims and lawsuits filed against directors
and officers regarding allegations of misconduct in how they treat employees,
shareholders and decisions that affected the company.
Benefits an EPLI Policy Provides
If the insured company has to deal with a lawsuit or claim, the insurance
company will reimburse the company for expenses incurred by handling the
lawsuit. These expenses will be covered regardless of the outcome of the case.
The policy will also cover the cost of any settlements or judgments entered
against the company. EPLI policies do not usually cover criminal fines, civil
fines, penalties or punitive damages. EPLI also excludes coverage for claims
that are covered by other insurance policies, such as property damage or
bodily injury claims.
Factors That Affect the Cost of EPLI Coverage
Some factors which affect the cost of EPLI include the size of the company,
the type of business it is, the number of employees, where the business is
located, the number of claims and lawsuits previously filed and the length of
