Employment Practices Liability Insurance
What is employment practices liability insurance?
If a business is sued by an employee over wrongful termination or another violation of employee rights, employment practices liability insurance (EPLI) can pay for legal costs.
Why do you need employment practices liability insurance?
Employment practices liability insurance (EPLI) protects your small business when a worker sues over employment-related issues. This policy covers your legal costs when an employee or group of employees claim their civil rights were violated or they were unable to complete their work in a fair environment.
What does employment practices liability insurance cover?
EPLI is usually a claims-made policy
In a claims-made policy, a claim is covered only if your policy is active both when the incident occurred and when the claim is filed. For example, your house painting business is forced to close, so you cancel your EPLI coverage. A few months later, a former employee sues you for discrimination, but since you no longer have an EPLI policy, the insurer likely won’t pay for lawsuit costs. Note that in some situations, you may be able to extend a policy beyond its original end date.
Directors and Officers Insurance
D&O insurance covers decisions made by directors, officers, and board members on behalf of the company. If they are sued, it may pay their legal expenses.
Identity Theft Insurance
Cover some of the costs related to identity theft. It reimburses victims for money spent on reclaiming their financial identities and repairing their credit reports. Those costs can range from phone bills to legal help.