Employers' Liability Insurance

Running a business comes with its benefits and challenges. Often issues arise in the workplace that may necessitate employment practices or employers’ liability insurance. Yet, both policies provide different coverage, and it helps to understand the differences. Here are some essential things to note before you pursue coverage for your office.

What Is Employment Practice Insurance?

Employment practices liability coverage is often called EPLI. This insurance benefit helps offset costs and claims associated with wrongful acts that arise during the employment process. Some of these actions include:

  • Wrongful termination
  • Discrimination
  • Harassment
  • Negligent evaluation
  • Invasion of privacy

Sometimes nonemployees cited for such behavior can be included in the policy but generally are not.

Key Differences To Note

Often, patterns within a workplace exist due to natural business conditions, and most of these patterns are both acceptable and crucial to the company’s successful operation. EPLI insurance covers the unacceptable or wrongful actions within a workplace. Conversely, in connection with workers’ compensation insurance, employers’ liability insurance is necessary to cover expenses associated with the illness, death or injury of employees while working on-site.

Employment practices issues and claims continue to rise, which is why having suitable insurance is crucial to your business’s overall health. Both employment practices and employers’ liability insurance are necessary to reduce potential risks within your company.