What is Oregon Employment Practices Liability Insurance?
Commonly known as EPLI, Employment Practices Liability Insurance covers businesses against claims from employees. Where Workers Compensation and Employers Liability policies exclude, EPLI includes. EPLI includes such things as: sexual harassment, wrongful termination, discrimination, etc. The employee brings suits against an employer when they feel their legal rights have been violated.
Is Oregon EPLI only necessary for larger companies?
No. Most people do think of this type of insurance only necessary for larger organizations, however, the reality is, smaller companies face a lot of the same risks! As this idea became more recognized, insurance companies started offering EPLI coverage for smaller companies. They can add it as a stand alone policy or in addition to their Businessowners policy. Also, EPLI protects against claims from past, present, and potential employees.
What are some of the risks Oregon EPLI insures against?
- Wrongful Termination
- Sexual Harassment
- Negligent Evaluation
- Breach of Employment Contract
- Failure to Employ or Promote
- Wrongful Infliction of Emotional Stress
- Mismanagement of Employee Benefit Plans
- Deprivation of Career Opportunity
The premium costs associated with this kind of coverage are dependent on the type of business, number of employees, and other risk factors such as previous claims or lawsuits brought against the organization/employer.
These types of policies also cover paying the costs for judgments/settlements and the cost to reimburse the insured for defense costs that occur in defense of a claim or suit, regardless if company wins or loses the lawsuit.
What is excluded from an Oregon EPLI Policy?
Generally, these types of policies don’t pay for civil or criminal fines, punitive damages, or if the liabilities are covered by other policies, i.e. Workers Comp or Employer Liabilities Policy.
Conditions that the insurance company may require the insured adhere to:
- Distribute Employee Handbooks addressing the company’s policies
- Provide employees with information on steps to take if they are subject to sexual harassment or discrimination
- Maintained documented records of all complaints and the steps taken to prevent and solve employee disputes
- Install an effective hiring/screening program to avoid discrimination in hiring
If you have questions about whether you need an EPLI policy, allow the experts at Ferranti-Graybeal Insurance review your situation and discuss options with you. We are always here to help!
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