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Employment practices liability insurance, known in the trade as EPL insurance or EPLI, provides coverage to employers against claims made by employees alleging:
Large corporations are frequently well-insured against employment practices lawsuits and are equipped to handle almost any one. Small and young enterprises, however, are frequently most exposed to employment-related lawsuits. This is because they frequently do not have an employee handbook or legal department that outlines the policies and procedures for hiring, disciplining, and terminating employees.
EPLI policies cover business owners, directors, officers, and managers. Some policies also cover employees. Additionally, you can buy third-party policies to cover claims brought by non-employees, such as clients.