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Does your business employ one or more people? If so, you need to be prepared for the possibility of an employee lawsuit. Small businesses are just as vulnerable as large corporations… even family businesses aren’t immune. There are steps you can take to prevent lawsuits such as:

  • create an employee handbook with set policies and procedures
  • document employee acceptance of handbook
  • document any disciplinary action

However, no matter how diligent you are, your business can still end up being sued, which is why having employment practices liability insurance (EPLI) for your business is essential.

EPLI insurance is different from general liability protection. It can include coverage for “injury” situations such as:

  • Discrimination
  • Sexual harassment
  • Wrongful termination
  • Employment contract breach
  • Wrongful discipline
  • Emotional distress
  • Failure to employ or promote

An EPLI policy generally provides coverage for legal defense and court judgments; however, it may not cover punitive damages or civil and criminal fines.  Coverage availability varies by business type and the insurance company providing the policy.  Some Business Owner Policies may include limited EPLI coverage; however, it may not be sufficient. 

If you don’t have or aren’t sure about your EPLI coverage, our business insurance team can help you review options.


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The information provided in these articles are only general descriptions and should not be relied upon as complete, correct or accurate for your specific situation. All coverage informaiton is subject to policy provisions, endorsements and may be  subject to your meeting underwriting qualifications. Murphy Insurance Agency is not engaged in rendering legal, accounting or other noninsurance professional services. Consult an appropriate professional for advice regarding your own situation.