Employment Practices Liability (EPL) protects the company against damages for events relating to their workforce, including, but not limited to: wrongful terminations, harassment, discrimination, defamation and unfair hiring/firing practices; and provides defense costs associated with responding to employment-related lawsuits.

Companies should consider buying EPL Liability Coverage for the following reasons:

• Employers are facing increasing legal obligations while managing their workforces
• Increased awareness and visibility of employment-related lawsuits
• Settlements can have a significant impact on the company’s financial stability

• Cost to defend against employment suits is high regardless of the outcome
• A mishandled employment lawsuit can cause irreparable harm to a company’s reputation

• Lawsuits from language in employee handbooks and other written policies are common
• Commercial GL policies are not adequate to respond to EPL matters

Some sources of EPL claims are the following:

• Race and sex discrimination

• Federal, state, city and county statutes

• Customers, clients and consumer groups

In addition, these claims can come from employees, former employees and employment applicants:

• Wrongful termination – Discharge in Violation of Public Policy
• Invasion of Privacy – Assault and Battery

• Emotional Distress – Harassment/Discrimination

• Breach of Contract – Defamation

• Equal Employment Opportunity Commission (EEOC) – Equal Pay Act (EPA)
• Department of Labor (DOL) – Title VII

• Age Discrimination in Employment Act (ADEA) – Americans with Disabilities Act (ADA)

• Fair Labor Standards Act (FLSA) – Family Medical Leave Act (FMLA)