Employment Practices Liability Insurance

Employment-related lawsuits are a growing concern for employers of all sizes, including home-based businesses. Prairie Villa Insurance  can help you manage all your business risks, including employment practices liabilities.

What is Employment Practices Liability Insurance?


Employment practices liability (EPL) insurance is a policy used to cover your risks due to some of the most common employment-related lawsuits, including the following:

  • Wrongful termination: The discharge of an employee for invalid reasons.
  • Discrimination: The denial of equal treatment to employees who are members of a protected class.
  • Sexual harassment: Subjecting an employee to unwelcome sexual advances, obscene or offensive remarks, or the failure to stop such behaviour.

EPL works to provide the necessary resources to defend your company against a lawsuit or to pay for a claim. To best understand how to cover your EPL risks, it’s important to know the potential sources:

Recruitment practices Annual conduct reviews
Employment applications Enforcing performance policies
Employment offers Termination
Employee orientation process Improper documentation of the items listed above

Additional Information

Evidence of desirable employment practices and policies may be required for an EPL policy, and will certainly help defend against a suit (even for a small, home-based business with only a few employees). The underwriter may require a copy of the following policies to show that you are taking steps to reduce your risks:

Sexual harassment Disability and accommodations
Equal opportunity Employee discipline
Termination Performance evaluations
Internet usage/employee privacy Leaves of Absence
Internal job postings Hiring and interviewing
Discrimination Resolution/arbitration

Avoid a Lawsuit

As costs for litigation and damage awards climb, experts predict that employment liability will only become more complex. As a result, it is critical for business owners to understand their exposures and options for managing risks.