Is EPLI Worth It?

Determining How Much Employment Practices Liability Insurance You Need for Your New Jersey Business

You understand how important it is to protect yourself and your employees. Positive changes to working environments have been made over the past decades, but there are still issues that can negatively affect operations and legality that you may not foresee. No matter how much you work to treat employees in a fair, just, and equitable manner, it is still possible to make mistakes or for things to happen outside your direct control. That is where Employment Practices Liability Insurance (EPLI) becomes an essential business tool.

Employment practices liability has become a prominent issue recently. Organizations of all sizes and types look to EPLI carriers for policies that can help protect their interests in the case of a complaint. Before deciding how much insurance you need for your New Jersey business, take some time to understand the meaning and functionality of EPL insurance so you can make smart choices going forward.

What Is Employment Practices Liability Insurance (EPLI)?

EPL insurance is business insurance that offers protection to companies from employee lawsuits. It can help protect against claims of discrimination, harassment, wrongful termination, and more. EPLI coverage can give small, medium, and large business owners peace of mind knowing that they are protected financially if an employee files a lawsuit.

When deciding if you need this type of insurance coverage or not, the criteria are not that difficult to understand. Any size company that has employees can be exposed to these types of risks, making EPLI an important consideration for any business owner.

For example, companies that frequently hire and fire employees may be at a higher risk for lawsuits related to wrongful termination or other employment law violations. Companies that have a large number of employees may also be at a higher risk, as they may be more likely to face allegations of discrimination or harassment.

Is EPLI Insurance Worth It?

Employment practices liability coverage can help offset the costs of legal fees, settlements, and judgments associated with employment-related claims. In most cases, EPLI policies will cover the cost of an attorney to represent the insured business in court. Additionally, if a settlement is reached or a judgment is rendered against the business, these costs will typically be covered up to the amount of insurance purchased. EPLI can help pay for legal expenses if your business is sued for wrongful termination, sexual harassment, discrimination, or other workplace issues. These types of claims have increased substantially in recent years with over 60% of employees reporting discrimination at work. [1]

EPLI policies typically have a limit on the amount they will pay out for a claim, and they may also exclude certain types of claims from coverage. The bottom line is that EPLI insurance offers valuable protection for businesses of all sizes.

EPLI Claims Examples:

When deciding whether to get EPLI coverage or not, you may initially think that you would never do any of the things that a policy protects you from. No matter how anti-discrimination and legally compliant you are, that does not mean you can control every aspect, or every individual, of the organization at all times.

There are plenty of things you can do to minimize risk of employment-related lawsuits:

Besides making sure all the people who work for your company are protected and fairly treated, these actions may contribute to a lower EPL insurance policy cost overall. A track record of positive and fair operations always improves the standing of your brand within the industry and interactions with all related vendors, partners, and customers.

How Much Employment Practices Insurance Do I Need?

One of the most common questions about this type of policy is, “How much EPLI coverage do I need?” The answer to this question is not one-size-fits-all as all companies are different. One of the biggest factors in the decision comes down to how many employees you have. The more employees, the greater the risk of needing EPLI coverage.

As with all insurance purchases, it is important to weigh the risk versus the reward. This type of policy investment can protect your company financially if a related issue goes to court. Additionally, an EPLI policy provides peace of mind that your organization can respond to challenges in a way that will not lead to serious financial problems.

Employment Practices Liability Insurance is one powerful tool that can help protect your New Jersey business. Explore your options with your New Jersey independent insurance agent and choose the protection that fits your company best.

Why Work with a New Jersey Independent Insurance Agent?

In order to get the protection you need and deserve, you’ll want to work with a trusted expert. And who could be better for the job than a local agent who shares your ZIP Code? New Jersey independent insurance agents take the time to discuss exactly how much coverage is necessary for your individual needs.

Independent agents act as your own personal insurance shoppers, offering you more options than one-policy companies. With just one call, they’ll start gathering multiple quotes for you to review so you can be sure you get the right coverage at the right price.

And, because they’re your dedicated agent, they’re not just there at the beginning, they're there to help walk you through the claims process and make sure you’re getting the benefits you're entitled to should an event occur.