Running a business means managing people, and people create risk. Even well intentioned employers face exposure from employee related claims. A single complaint can lead to legal costs, settlements, and long term damage to your business.
Employment Practices Liability Insurance, known as EPLI, helps protect businesses from claims tied to how employees are hired, managed, and terminated.
What is people risk?
People risk refers to employment related actions that can trigger claims, including:
- Wrongful termination
- Discrimination
- Harassment
- Retaliation
- Failure to promote
- Wage and hour disputes
These claims do not require intent. A misunderstanding, documentation gap, or inconsistent policy can be enough to trigger a lawsuit.
Why EPLI claims are increasing
Employment laws continue to expand. Employees are more aware of their rights. Insurance carriers are also more likely to settle claims to avoid long legal battles.
Common factors that drive claims include:
- Inconsistent discipline or documentation
- Outdated employee handbooks
- Lack of supervisor training
- Poor termination procedures
Even strong workplace cultures are not immune.
What EPLI coverage can help with
EPLI may help cover:
- Defense costs, including attorney fees
- Settlements and judgments
- Claims brought by current, former, or prospective employees
Coverage varies by policy. Regular reviews are critical to ensure limits and terms still fit your business.
Why reviews matter
As your business grows, your people risk grows with it. New hires, leadership changes, and policy updates can all impact exposure. An annual EPLI review helps identify gaps before a claim happens.
The bottom line
People related claims can be expensive, stressful, and distracting. EPLI helps transfer that risk so you can focus on running your business. Contact Professional Insurance Programs at 800-637-4676 or info@profinsprog.com.