Do I need employment practices liability coverage for my business?
Employment practices liability (EPL) coverage protects your business if an employee, customer, or vendor alleges discrimination, wrongful termination, harassment, wrongful failure to promote, or retaliation. The EPL coverage will pay for liability damages and defense costs brought against your business for any of these reasons.
While most businesses do not expect employees to file suit against them, it can and does happen, at times for no apparent reason. And, it might be more likely to happen in times of economic worsening when terminations or layoffs are viewed by employees as being wrongful acts against them.
If your business has employees, speak with your local independent insurance agent about adding EPL coverage to your other businessowner coverage. There is no way to predict when or if a disgruntled employee will file a claim against your business.