In today’s world, Employment Practices Liability is an essential element of insurance coverage for businesses of all types and sizes. As protecting employee rights increases, so do lawsuits against employers. Business owners in Red Bank and throughout Monmouth County look to Blue Lion Insurance Advisors, LLC to help find appropriate insurance policies to protect their firms from the negative impact of litigation.

What Employment Practices Liability Insurance (EPLI) Covers

Employment Practices Liability Insurance, commonly known as EPLI, is designed to provide a safety net for employers who are accused of wrongful acts, including:

  • Discrimination
  • Sexual harassment
  • Invasion of privacy
  • Breach of contract
  • Wrongful termination

Though most employers are fair-minded and try hard to follow good, sound practices with the intent of being compliant to local, state, and federal laws, this doesn’t prevent them from being at risk. Disgruntled or vengeful employees may try to take advantage for financial gain and/or emotional satisfaction. It is even possible that unlawful actions may take place in your workplace of which you are not aware.

Blue Lion Insurance Advisors, LLC who know the details of EPLI Policies, have solutions to help you avoid the high costs of a legal battle. We are sensitive to the fact that an employment practices lawsuit will not only be a financial burden, but may tarnish the reputation of your company if not handled properly.


n New Jersey, as in many other states, employees may be disciplined or demoted for their ineptitude, poor attitude, or inappropriate behavior. For employers to treat them differently than other employees because of any of the following characteristics, however, is often wrongful:

  • Age
  • Disability
  • Ethnicity
  • Skin color, country of origin
  • Race
  • Religion or belief system
  • Sex, sexual orientation, gender identity
  • Marital status
  • Military status
  • Pregnancy

An EPLI Policy may help provide your company with the funds to fight claims, whether fair or unjust. If, for example, an individual with a protected characteristic claims discrimination during the hiring process, harassment at the workplace, or failure to receive a bonus, promotion, or raise, having an EPLI Policy will help provide your company with protection.

Sexual Harassment

An EPLI Policy may also protect you in the event that a member of your staff is accused of sexual harassment or one of your managers is accused of tolerating such behavior. It can also assist in protecting you if claims are made that your company retaliated against the person who brought these claims to the attention of management.

Invasion of Privacy

Some companies monitor their employees in the workplace by keeping track of their computer usage and phone calls or by other methods. An EPLI Policy can also protect you from changes that such monitoring of work-related activities is an invasion of employee privacy. In almost all cases, this type of monitoring is done to prevent theft of money or corporate secrets, not to hassle honest employees.

Breach of Contract

Employees working under contract have the right to sue their employer for breach of contract. Examples of breaches of contract include: lowering the amount of payment, shortening the duration of the contract, or changing the tasks required while the contract is still in force. Employers who hire employees who work under contract are wise to have an EPLI Policy to protect their interests.

Wrongful Termination

Although state laws regarding employment termination vary in detail, generally speaking employers have the right to terminate an employee at will (for any reason) throughout the country. There are, however, some important exceptions. Employers are not permitted to fire their employees for unacceptable, discriminatory reasons. Employers may be sued for wrongful termination when the employee claims to have been fired in retaliation for legitimate complaints about wages, racial, gender, or age discrimination, sexual harassment, filing a workers’ comp claim, or whistleblowing. In spite of your best efforts to run an equal opportunity business honestly and fairly, you may still have a claim of wrongful termination made against you. This is when you’ll be glad you have EPLI to protect you.

Steps Your Company Should Take for Self-Protection

Blue Lion Insurance Advisors, LLC recommend that you be proactive in protecting your business from Employment Practices Lawsuits by:

  • Providing employee handbooks detailing company policies regarding discrimination and harassment and making clear which types of behavior will not be tolerated.
  • Making your workplace fully compliant with ADA regulations
  • Being even-handed in terms of raises, promotions, discipline, and other company actions so that no one feels singled out
  • Making certain your recruiting and hiring methods are non-discriminatory
  • Following company written guidelines, processes, procedures and being consistent with all employees

By taking these steps you will minimize the possibility of employment practices litigation.
Nonetheless, just as doing everything you can to minimize health risks does not prevent illness, doing everything possible to comply with employment law will not prevent you from being sued.

Contact Our Monmouth County Employment Employment Practices Liability Insurance Broker

We are a capable and trustworthy team of insurance professionals, equipped to help you find the right EPLI policy to help cover you for:

  • Defense costs
  • Settlement expenses
  • Mistakes in handling employment regulations
  • Failure in managing and/or disciplining employees who harass or discriminate

The next step is easy!

Call us today at (732) 649-1600 to learn how our advisors could get you the right coverage, at the right price, and superior service. You can also Request A FREE Insurance Quote on our site or Contact an advisor for more information.

Experience Blue Lion Strong™!