EPLI is designed to protect businesses from financial losses due to claims made by employees regarding employment-related issues, such as discrimination, wrongful termination, and harassment. It helps cover legal fees and potential settlements arising from these claims.

Any business that employs staff should consider purchasing EPLI, regardless of size or industry. Companies with a higher number of employees or those in industries with greater exposure to employment-related claims may particularly benefit from this coverage.

Typically, EPLI policies cover only employees, not independent contractors. However, some policies may extend coverage to independent contractors if they are treated similarly to employees. It’s essential to clarify this with your insurer.

Common exclusions may include claims arising from intentional acts, violations of employment laws, or claims related to wage and hour disputes. Always review your policy for specific exclusions that may apply.

To reduce the risk of claims, implement clear workplace policies, provide employee training on discrimination and harassment, maintain open communication channels, and conduct regular performance reviews. Having a solid employee handbook can also help set expectations and guidelines.

EPLI specifically covers employment-related claims made by employees against an employer, while general liability insurance protects against third-party claims related to bodily injury or property damage. They serve different purposes and are not interchangeable.

When a claim is made, the insurer will typically investigate the allegations and provide legal defense for the employer. If the claim is valid and covered under the policy, the insurer may also pay for settlements or judgments awarded to the claimant.

Yes, many insurers offer the option to bundle EPLI with other types of insurance, such as general liability or property insurance. Bundling can often result in cost savings and streamlined management of your insurance policies.