It’s easy to feel as if employing people is a legal minefield. This is mainly because there is so much potential for lawsuits over wrongful termination, harassment, discrimination and workplace conditions.
Employment practices liability insurance (or EPLI) covers the risk of having to pay out such claims. EPLI policies often cover the business itself, as well as individuals like company directors.
Employment practices liability insurance policies are usually written to cover cases that come out of unintentional actions (or failures to act) rather than deliberate acts of discrimination or other wrongful practice.