Employment Practices Liabilities

Employment related disputes continue to pose a significant exposure to both companies and senior management. The vast number of federal and state laws governing employment makes allegations by employees increasingly common. Conducting the defence of these allegations can be very costly and if damages are awarded the sums can be large.

Employment Practices Liability Insurance (EPLI) is designed to provide protection for managers and the company from the financial consequences of employment practice violations. The policies can be triggered by an allegation of wrongdoing by an employee and can provide protection for the cost of running a defence as well as settlements and damages that may ultimately be awarded.

Key exposures

• wrongful dismissal or termination of employment
• breach of any oral or written employment contract
• employment related misrepresentation
• violation of employment discrimination laws
• sexual harassment
• wrongful failure to employ or promote, wrongful discipline
• wrongful deprivation of a career opportunity
• invasion of privacy
• employment-related defamation or employment-related wrongful infliction of emotional distress