Employment Practices Liability INSURANCE
Protection for allegations of wrongdoing in the workplace.
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3 MIN
Employment Practices Liability Insurance with Nicole
What EPL does & doesn't cover
Recommendations based on stage and vertical
Which add-ons make sense for your startup
BECAUSE
The average cost for defending and settling employment law cases is $160,000.
WHEN
- In certain states, as early as when hiring your first employee.
WHY
- Any company with employees has EPL exposure.
- There are over 180 employment-related laws, not including city and county regulations.
See recommended limits based on your stage and vertical
GET COVERAGE RECOMMENDATIONTHE PROTECTION
What Employment Practices Liability Covers
Discrimination
Lawsuits based on age, gender, race, etc.
Failure to promote
Employees for reasons not related to work performance.
Emotional distress
Losses caused by behaviors that are not fit for the workplace.
Third-party liability
Protection from costs related to damages or bills associated with a party unrelated to your business.
Harassment
Protection from claims including sexual harassment.
Improper hiring practices
Lawsuits filed by candidates that believe your hiring process is not legal.
Retaliation and wrongful termination
Allegations of being unfairly punished for speaking up about certain work-related issues.
What it doesn’t cover
- Workplace injuries: typically covered by Workers’ Compensation.
- Mismanagement of employee benefits, typically covered by Employee Benefits Liability.
- Employee lawsuits alleging you mishandled your role as fiduciary, typically covered by Fiduciary Insurance.
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FROM THE ACTUARIES
Employment Practices Liability Claims Examples
Case Study
Incident
A series A ad-tech startup receives a demand letter from a former employee alleging gender based wrongful termination and retaliation.
Resolution
The EPL policy provides coverage for the cost of attorneys’ fees to defend the startup and contributes to an early settlement in order to prevent a lawsuit from being filed.
Incident
A lawsuit is filed by a former employee against a series C fintech startup alleging discrimination and retaliation based on disability.
Resolution
The EPL policy provides coverage for the cost of attorneys’ fees to defend the startup against the lawsuit, as well the cost of any settlement or judgment up to the policy limits.
Incident
A co-founder of a real estate tech startup leaves the company due to disagreements with other executives on the team. One of the executives reacts to the co-founder’s departure announcement on Twitter with a comment on his management style. The startup receives a demand letter from the former co-founder alleging defamation.
Resolution
The EPL policy provides coverage and contributes to an early settlement within 1 month of the date the claim was made.
Wrongful termination retaliation
Incident
A series A ad-tech startup receives a demand letter from a former employee alleging gender based wrongful termination and retaliation.
Resolution
The EPL policy provides coverage for the cost of attorneys’ fees to defend the startup and contributes to an early settlement in order to prevent a lawsuit from being filed.
Alleged discrimination based on disability
Incident
A lawsuit is filed by a former employee against a series C fintech startup alleging discrimination and retaliation based on disability.
Resolution
The EPL policy provides coverage for the cost of attorneys’ fees to defend the startup against the lawsuit, as well the cost of any settlement or judgment up to the policy limits.
Co-founder alleging defamation
Incident
A co-founder of a real estate tech startup leaves the company due to disagreements with other executives on the team. One of the executives reacts to the co-founder’s departure announcement on Twitter with a comment on his management style. The startup receives a demand letter from the former co-founder alleging defamation.
Resolution
The EPL policy provides coverage and contributes to an early settlement within 1 month of the date the claim was made.
INSURANCE 101
The Difference: Workers’ Comp, Employer’s Liability, and EPL Insurance
Hiring employees, vendors or contractors? Find the right coverage as your exposure increases and risks change.
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