The Importance of Employment Practice Liability Coverage

Employment Practices Liability Insurance is an essential safeguard for employers of virtually every size and field. Even companies that are particularly attentive to compliance with employment law must be prepared to deal with potential claims.

Outsourcing HR Does Not Preclude Liability

Even if a company outsources HR tasks, it does not defer liability in the event that an employee initiates a claim related to employment practices liability. It will retain liability because any HR service providers that it hires are acting as its direct agent when handling HR matters.

Discrimination Claims Are Prevalent Across Numerous Industries

Companies can face claims for discrimination although no one in a company intended to act disriminatory towards an employee. If the effect of any employment practice is discriminatory, a company may incur legal liability.

Wage and Hour Compliance Is Heavily Regulated

It can be difficult for many companies to remain up to date with wage and hours restrictions. Both state and federal regulations codify key components of employer-employee relations such as how employers calculate hours, permit time off, and categorize employment status. Running afoul of any wage and hour law can result in costly liability.

Ultimately, all employers can derive valuable protection with EPLI coverage. It is an extremely important tool for managing the cost and work associated with common claims.