Product Overview


Product Overview

Why do small business owners need Employment Practices Liability (EPL) insurance?

Large corporations aren't the only companies that need EPL insurance. The small business workplace is a minefield for litigation.  Many small business owners don’t have the formal human resources policies, procedures and expertise to prevent harassment and discrimination charges. Of all the EPL lawsuits filed each year, approximately 50% involve small businesses. With the countless charges filed each year, small business employers pay tens of millions of dollars. On average, it costs more than $10,000 to defend against an EPL charge, and business owners must defend even frivolous and baseless claims. Also, EPL claims are not limited to employees; customers and vendors can allege harassment and discrimination too.

Not sure you have an EPL exposure? Consider these possible scenarios:

  • A convenient store employee refuses to serve a customer because of their ethnicity or nationality, and the customer sues for discrimination.
  • An expectant mother sues a landlord who won't rent her an apartment because he doesn't want a child living in the building.
  • An electrical contractor fires an employee for excessive absences, but the employee files a complaint for wrongful termination.
  • After the breakup of a romantic relationship at work, an employee files a sexual harassment against the company.
  • The owner of an office building is not financially able to add an elevator to accommodate a physically impaired employee of a tenant company, and that individual files an ADA claim.
  • The manager of a dry-goods distributor returns from National Guard deployment and finds another individual has filled her job.  The company offers her a part-time, entry-level job in a different department. She files a complaint with the federal government under the Uniformed Services Employment and Reemployment Rights Act which the company owner never knew existed.
  • In an effort to save money on health insurance, a small manufacturer requires employees to quit smoking as a condition of employment. One worker refuses to quit and sues the company.

Why Buy Employment Practices Liability coverage from Providence Mutual?
 Broad Protection That is Competitively Priced

  • Our policy protects against discrimination and employment-related claims – including those that occurred years ago but weren’t reported -  brought by employees, customers and vendors.
  • Limits of up to $250,000 per occurrence.
  • Coverage includes full prior acts, punitive damages (where insurable by law), and third-party claims.

 Superior Services

  • Our policy is supported by highly experienced EPL loss prevention experts, claim adjustors and associated law firms.
  • Access to a toll-free legal advice line.
  • Access to loss prevention website loaded with valuable information and tools, including a sample Human Resources procedures and manuals.

Contact your local Providence Mutual agent for more information.