Employment Practices Liability in Pittsburgh, Pennsylvania

Your organization’s staff is a valuable resource and integral to financial growth and ongoing success. However, even the most loyal and professional employees can represent significant risks and exposures for your business. After all, as an employer, you are beholden to various laws and regulations regarding fair and ethical treatment of your workers, and any faltering or failures in this regard could lead to costly lawsuits and devastating ramifications. With this in mind, understanding and securing adequate employment practices liability insurance (EPLI) should be a top priority.

Why Do I Need EPLI Coverage?

EPLI should be considered an integral part of any employer’s loss control measures. These policies establish a contractual agreement between your organization and its insurance company; as long as you maintain your coverage and pay your premiums, you can access financial assistance that may be critical in limiting what might otherwise be catastrophic out-of-pocket losses and costs.

Organizations may eventually face an employment practices liability lawsuit regardless of how highly they prioritize fair and equal treatment of workers. After all, a simple misunderstanding or remark taken out of context could lead to lawsuits and, even if your organization is eventually absolved of the allegations, the cost of defending yourself and managing the situation could have far-reaching ramifications.

What Does EPLI Cover?

EPLI typically helps your organization manage financial losses and legal expenses arising from employment practices liability lawsuits, including attorney fees, court costs, settlements and judgments. While the exact details of your policy may vary, this type of insurance can typically respond to the following common allegations:

• Harassment
• Discrimination
• Wrongful termination
• Improper hiring practices
• Failure to promote
• Negligent evaluation
• Retaliation
• Breach of employment contract
• Wrongful discipline
• Invasion of privacy
• Mismanagement of employee benefits

How Much EPLI Coverage Do I Need?

Your organization’s exact EPLI coverage needs may vary significantly depending on its unique circumstances. Many factors, such as your industry and turnover rate may affect how much EPLI coverage you should carry, as such criteria may often be related to the likelihood of facing an employment practices liability lawsuit. By working with a qualified insurance professional, such as those at James L. Smith Insurance Agency, you can assess your situation and identify appropriate coverage options.

Is EPLI Mandatory?

Although EPLI is typically not required by law, your organization should still thoroughly vet its potential importance and role in your overall loss control measures. Without appropriate coverage, a single lawsuit, even based on unfounded accusations, could wreak financial havoc on your business’s financial stability and future prospects.

We’re Here to Help

At James L. Smith Insurance Agency, our dedicated staff has extensive experience helping businesses analyze their circumstances and acquire optimal coverage. Contact us today to get a personalized quote or learn more.