Texas Employment Practice Liability Insurance from Morgan Insurance Agency

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It’s estimated that three out of five firms will be sued by an employee, even up-and-coming businesses. Companies are realizing that they are vulnerable from the pre-hiring process through the exit interview, or even if the employee is only at the company a matter of days. It’s even happened when the would-be employee is never hired. Never underestimate how personally an employee can take a situation. It can happen to any firm – no one is exempt.

Employment Practices Liability, or EPLI, is a new form of liability insurance that protects employers against claims by employees, former employees, or potential employees who claim that their legal rights as employees of the company have been violated. EPLI covers such employee lawsuits as discrimination (age, sex, race, disability, etc.), wrongful termination, sexual harassment, breach of employment contract, negligent evaluation, failure to employ or promote, wrongful discipline, deprivation of career opportunity, wrongful infliction of emotional distress, and mismanagement of employee benefit plans.

EPLI coverage cost will depend on what kind of company you have, number of employees, and various risk factors (such as whether your company has been sued over employment practices in the past). The coverage will reimburse your company against the costs of defending a lawsuit in court and for judgments and settlements. The policy covers legal costs, whether your company wins or loses the suit. Policies don’t usually pay for punitive damages or civil or criminal fines. Liabilities covered by other insurance policies such as workers compensation are excluded from EPLI policies.

Texas: Protect your business against employee claims – contact us today.