Why Do I Need EPLI Coverage?


Pembrook Nelson

Apr 10, 2020


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As a business owner, you do what you can to ensure that you treat employees well. You have the right plans and procedures in place, and you let them know precisely what is expected of them during a typical workday. In a perfect world, everyone would follow the rules, and life at work would be bliss. Unfortunately, no one lives in a utopia. If you’re looking for a way to protect yourself against employment-related claims, you need to have EPLI coverage.

Why You Need EPLI Coverage


If you’re like most businesses, you are probably wondering: “Why do I need EPLI coverage?” You might think that this is just an added expense. You’ve never had any claims filed against you in the past. The world is changing and turning into a different beast. Doing what you can to protect your business is imperative. Below are some of the reasons why you need EPLI coverage.

1. Every Company Is at Risk

It doesn’t matter if you’re a large corporation or a small local business; every business is at risk when it comes to employee lawsuits. Some of the most common types of claims that occur include the following:

  1. Pregnancy discrimination
  2. Illegal background checks
  3. Unpaid interns

But these aren’t the only issues that employees file lawsuits for. You also have to worry about employee lawsuits based on wrongful termination, sexual harassment, invasion of privacy, wage and hour violations, or breach of contract.

2. The Number of Employee Lawsuits Is Increasing

There have been changes in labor laws. The ability of employees to ensure that they are being treated fairly has increased as well. It is no surprise that the number of lawsuits that have occurred in the past few years has risen. Large corporations and small businesses are at risk of getting sued. Having EPLI coverage protects your business.

3. Settlements Can be Expensive

As the number of employee lawsuits increases, the amount of money that companies have to pay out is also increasing. If you want to ensure that you stay in business after paying out a settlement, you need to have insurance in place. Otherwise, you will be paying these costs out of pocket.

4. You May Not be at Fault, but You Will Still Have to Pay

Even if a court finds that your business wasn’t at fault, you will still have expenses that you will have to pay for. This might include court or legal fees and defense costs. 

5. Your Regular Policy Probably Doesn’t Cover You

You may currently have insurance coverage for your business, but the vast majority of commercial liability policies don’t cover employee liability claims. Thus, if you get sued, you will have to pay for any expenses out of your pocket.

What ELPI Covers

Injured Employee talking to her Employer

If a current, former, or potential employee believes that your company has mistreated them, they can take you to court. If you’re looking for a way to save yourself money, then having EPLI coverage is essential.

EPLI coverage is in place to reimburse your business when it comes to expenses incurred fighting employee allegations in court—whether you win or lose. It will also pay for any judgments or settlements that arise. Depending on the type of policy you get, your EPLI might also cover appeals, class action suits, or back pay.

As soon as an allegation of wrongdoing is made, the EPLI coverage kicks in. This makes it possible for you to control the cost of the incident and get lawyers and other specialists involved as soon as possible. Taking these steps could reduce the chances of something small, turning into a full-blown lawsuit.

Finding the Right Coverage

When it comes to EPLI coverage, there isn’t a one-size-fits-all plan. You need to get a policy that works for your business. There are several things you need to consider when looking for the right coverage, and these include the following:

  1. The size of your business
  2. Your employee turnover rate
  3. Your organization’s internal culture
  4. Your organization’s leadership

If you find yourself asking: “Why do I need EPLI coverage?” the answer is simple: to protect your business. The costs of defending your business in a court of law can be expensive, and if you want to ensure that you have the money to stay in business, having EPLI coverage is imperative.

Talk to a Professional

Talk to a Professional

The best way to find EPLI coverage that covers the costs of defending your business is to talk to a professional at an insurance company. They’ll be able to put together a plan that will fit into your budget and ensure that all of your wants and needs are covered.

If you’re a small business, EPLI coverage can benefit you in so many ways. When it comes to finding other ways to help your business grow and become successful, make sure your business is listed in all of the local business directories. If you're not sure, a reputable digital marketing agency can help you take your business to the next level.

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