Unfair treatment based on race, age, religion, sex (including pregnancy, gender identity and sexual orientation) or disability.
When someone has been illegally fired or laid off due to discrimination, retaliation, a breach of contract or a violation of public policy.
Unwelcome verbal or physical behavior such as derogatory jokes, racial or ethnic slurs, unwanted advances, religious comments or offensive pictures.
Employment practices liability insurance (EPLI) can help cover costs if your business is sued by a customer or an employee for sexual harassment, discrimination or wrongful termination.
An EPLI policy can help to cover your legal fees if an employee (or several employees) accuses you of unfairly terminating them or if a customer accuses you of violating their rights.
For example, if one of the sous chefs at your family restaurant accuses a server of sexual harassment, your EPLI coverage could help pay the legal fees if the case goes to court.
It can also help pay for legal expenses associated with Americans with Disabilities Act (ADA) compliance complaints. For example, if a claim is filed that you don’t have proper wheelchair access to your restaurant.
EPLI insurance can help to protect your small businesses from the costs of lawsuits involving:
Note: NEXT currently only provides EPLI coverage for restaurant owners who purchase general liability insurance for restaurants with our Pro or Pro+ package.
The number of ADA lawsuits grew by almost 50% from 2017 to 2021, according to global law firm Sayfarth. EPLI can provide financial help for small business owners if they are forced to defend their business.
Small businesses may also be vulnerable to harassment or discrimination claims because they often don’t have a human resource department, legal staff or employee handbook.
If your small business is sued by a customer, employee or former employee, employment liability coverage can help to cover your legal defense costs and a settlement if the employee wins the case.
EPLI is a type of liability insurance that can help with legal fees if you or someone at your business is accused of harassment or discrimination.
Some of the more common kinds of claims covered under an EPLI policy include:
EPLI can cover business owners, managers and employees. It comes into effect after a claim is made against your business.
You need to have an active policy at the time the incident occurred, as well as when the claim was filed.
EPLI does not cover certain types of incidents, including:
EPLI will also not cover claims that are made if you do not have an active policy — even if you had EPLI when the incident occurred.
You must have coverage when the incident occurred and when the claim is made for it to be effective.
EPLI policies often don’t cover punitive damages or civil or criminal fines.
Small business owners might think that workers’ compensation insurance covers all types of employee-related issues. However, workers’ comp mainly helps to protect your business from injuries and illnesses that happen to your employees while at work.
It’s true that workers’ compensation does have a legal component to it. Employers’ liability coverage included in workers’ comp can protect your business from financial losses if an employee files a lawsuit against you.
But under workers’ comp, these types of lawsuits relate only to claims that were caused by the employer’s negligence or because work injuries prevented them from earning benefits.
EPLI is a separate and distinct type of insurance that helps you to pay legal fees for professional discrimination claims employees make against your business. It can help to protect your business from employee accusations of unfair treatment — which is not covered by workers’ comp.
Like most insurance coverages, the cost of employment practices liability insurance can vary from one company to the next. The amount you’ll spend on EPLI coverage depends on a variety of factors, such as:
General liability can provide important financial protection for your business after an accident, but it usually doesn’t protect businesses from all the risks they face.
It's important to consider other types of coverage when exploring your business insurance options and deciding on your risk management plan. For example:
Professional liability insurance can help protect your business from losses after a professional mistake.
Most states require workers’ compensation if you have employees. It can help cover medical expenses and lost wages after an employee’s workplace accident.
This coverage can help pay for a replacement or repair for your business property. General liability only over property that doesn’t belong to you.
NEXT currently only offers EPLI to restaurant businesses with our Pro or Pro+ general liability insurance.
You cannot buy employment practices liability from NEXT as standalone coverage without general liability.
It’s easy to get a quote for your business online in less than 10 minutes. Here’s how the process works:
Start a general liability quote. We’ll ask you some basic questions about your business and operations, including:
We will use the information you share to create a customized general liability policy that includes employment practices liability — if you select Pro or Pro+ (not our basic insurance offer).
If you like what you see, you can adjust the package limits to fit your preferences and make your purchase.