Business owners encounter many different types of business liabilities for which they may need protection. With lawsuits becoming commonplace in the work environment, employment practices liability insurance (EPLI) can protect a business from certain alleged employment violations.
What Is EPLI?
From the pre-hiring process to the final interview, employers are exposed to risk factors regarding employment laws and requirements, as well as potential threats by individuals within the business. For example, employees can claim wrongful termination, discrimination, or even career damage as a result of the practices that take place on the job. Additionally, employees may cause problems with clients while on the job or after they have left the company, putting a business at risk.
Employment practices liability insurance protection can cover the business, as well as its directors and officers, from the financial costs of employment-related lawsuits. The insurance may or may not include coverage for other individuals working for the company. The insurance can provide financial and legal support for the many problems that can result in employment-related lawsuits.
Before making a decision, business owners should carefully examine the specifics of EPLI coverage. For more information, read the National Law Review’s article on purchasing employment practices liability insurance.
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