Employment Practices Liability Insurance (EPLI) is a type of insurance policy that will protect a business when facing lawsuits related to hiring, employing, and firing employees. EPLI provides financial protection from liability a business faces from candidates, current employees, and former employees. An EPli policy will provide legal protection for a business, a business owner, officers, directors and employees.
In today’s litigious society EPLI Lawsuits have been on the rise for 20 years. According to 2015 study titled the Hiscox Guide to Employee Lawsuits, in 2014 businesses in the U.S. have an 11.7% chance of facing an employment related lawsuit.
EPLI claims can cost employers thousands of dollars in legal fees just to defend. If an employee wins a judgment or settlement, the total cost to a business could be many times higher. Most insurance companies offering EPLI coverage will generally pay or reimburse the business for any costs for defending the lawsuit. They will also pay for any settlements, or awards to the employee, up to the policy limit. Policy limits and deductibles will vary depending on the coverage options selected.
https://www.trustedchoice.com/business-insurance/liability/epli/
https://www.insureon.com/blog/post/2016/05/27/epli-what-small-businesses-should-know.aspx