Five Reasons You Need EPLI Coverage


Employers today operate in an increasingly dynamic Employment Practices Liability (EPL) environment. EPL lawsuits alleging retaliation, discrimination, failure to give breaks or pay overtime and sexual harassment are some of the most common types of liability lawsuits companies face today. 

Fortunately, there is a liability insurance policy that protects an employer against claims made by employees, former employees, third parties, regulatory agencies or potential employees. It covers discrimination (age, sex, race, disability, etc.), wrongful termination of employment, sexual harassment wage & hour, immigration, and other employment-related allegations. It protects your company, including your employees and directors and officers.

Below are the top five reasons why you should consider EPLI Coverage: 

  1. You make decisions every day that impact your employees: hiring, compensation, promotions, accommodating disabilities, terminations and more. Each of these can lead to a claim for a wrongful employment practice if not handled correctly.
  2. Both defense costs and settlement amounts for employment practice claims can have a severe financial impact on a company. Employment practices insurance is critical to protect organizations from the potentially significant cost of employment litigation.
  3. Even an organization with good human resources policies and procedures in place can be sued, and the cost of defending a claim can be enormous. It is not uncommon for legal fees associated with winning an employment lawsuit to exceed $250,000.
  4. Managing employment practices claims can be complex. An EPLI policy can help. Your claim will be assigned to a claim professional as well as an outside attorney who has expertise in the legal environment in your local area.
  5. Access to risk management and loss prevention services.

Employment related claims impact organizations of every size, in every industry. By partnering with Spectrum you will gain access to Employment Practices Liability risk management tools and insurance coverage that provide peace of mind with essential coverage to protect organizations from these claims that may potentially harm reputations and cause financial hardship.  


For additional information contact Victor Farfan with
Spectrum Risk Management and Insurance Services
Phone: 949-655-0120