Top 5 Questions on EPLI Insurance

1. Are all employers in need of EPLI insurance?
If you have employees, it is best practice to looks at getting EPLI insurance coverage. In today’s litigious society, anyone can sue for anything regardless of who is at fault. For this reason, EPLI insurance is a very important coverage for any employer.

2. Did you know?
A business is 3x more likely to face a lawsuit by an employee than experience any type of fire loss according to a recent risk survey. However, most businesses would never skip on fire protection, so why ignore EPLI?

3. How do insurance companies determine EPLI premium?
Usually the #1 determination of premium is number of employees. Other considerations are financial worth of company, industry or business type, turnover rates, hiring and firing procedures, history of claims, and employee handbook procedures.

4. What are ways to lower EPLI Insurance?
Having hiring and firing procedures and an employee handbook in place. Being consistent on how employees are treated. Being diligent in reviewing business procedures and making sure everyone is on the same page. Having one point of contact who handles the human resource department so that the same message is given to everyone.

5. What are the ranges of protection?
Most policy limits for EPLI coverage will range from $100,000 to $1,000,000 in coverage.

Bonus Information: Employment practices liability is an exposure that can affect any organization, regardless of size, industry type or location. Ways to help limit your Employment Liability Risk
  • Having an EPLI Policy
  • Being in compliance with Employment Law
  • Establish clear workplace policies
  • Educate management and employees
  • Hire carefully
  • Provide written job descriptions
  • Conduct regular employee reviews
  • Institute a zero tolerance policy regarding discrimination, substance abuse and any form of harassment
  • Provide an "open door" policy
  • Create an effective record-keeping system