Employment practices insurance provides coverage to employers against claims made by employees due to allegations of wrongful practices.
Small or new businesses are often the most vulnerable to employment claims. This is because small businesses usually lack a strong legal department or employee handbook detailing the policies and procedures that guide hiring, disciplining or terminating employees.
Employment practices insurance provides protection against lawsuits that are not covered by general business liability insurance. EPLI also includes protection for the full company as directors’, and officers’ liability insurance only protects the individual.