Often confused with D&O and E&O insurance, EPLI (Employment Practices Liability Insurance) is a bit different in that coverage is for employers against claims made by workers who sue a company for violating their legal rights as employees.

Employment Practices Liability Insurance can shield you from some of the astronomical legal expense involved in litigation. Purchasing an EPLI insurance policy in Orange County can guard you against these common lawsuit claims.

• Wrongful termination – A wrongful termination occurs when an employer releases an employee from their duties in a wrongful and illegal manner according to that employee’s rights. Wrongful termination can appear in the form of sexual harassment, age discrimination, race discrimination, or even breach of contract to name a few.

• Breach of Contract – More often than not, a breach of contract will occur under the spectrum of a union and one of its employees. There are stipulations under which the guidelines must be met for the proper termination of an employee. If an employee disagrees with their termination and believes it to be against their union contract, they may then follow up with a grievance. If the grievance is not satisfactorily met on behalf of the employee, that employee may pursue costly legal actions against the employer.

• Sexual harassment – Sexual harassment falls under different categories. One of those categories creates a situation wherein an employee feels if they balk against sexual innuendos in the form of unwelcome sexual advances whether verbal or physical, their jobs will be in jeopardy. They may be in danger of losing their job or not getting a raise or promotion. Another type of sexual harassment is one wherein the employee cannot perform his or her work duties to full capacity or the environment surrounding the employer and employee becomes volatile.

• Defamation of character – Defamation of character may take place if an employer makes an untrue statement that is harmful to the employee. This can either come in the form of a verbal or written statement.

• Failure to promote – Failure to promote can occur if an employee has justified and valid complaints wherein others are being promoted and they are left behind. The employee believes there is some other reason, of course, other than work performance for this behavior on behalf of the employer.

• Race discrimination – Race discrimination can occur if an employee is fired due to their religious beliefs or ethnic background.

As you can clearly see being an employer today is akin to walking on eggshells when it comes to the possibility of experiencing a controversial situation from one of your employees.

Obtaining EPLI for your Orange County business will defray the costs of a damaging lawsuit that may negatively affect your business. You have worked hard to establish your business, why not protect it to the fullest. Purchasing an Employment Practices Liability Insurance policy is a prudent business decision.