Employment Practices Liability Insurance for Engineering Firms
Protect your growing firm against certain claims involving hiring, termination, discrimination, harassment, and other employment practices.
Protection for Employment-Related Claims
Employment Practices Liability Insurance, or EPLI, helps protect businesses against certain claims involving the employment relationship. Claims can come from employees, former employees, and job applicants and may involve discrimination, harassment, wrongful termination, failure to hire or promote, and other covered employment practices.
For an engineering firm, this coverage becomes increasingly important as the business begins hiring, adding managers, and making more decisions about recruiting, compensation, performance, discipline, and termination.
Hiring Creates New Exposure
Applicants and employees can raise claims involving hiring, promotion, workplace treatment, discipline, or termination decisions.
Management Decisions Matter
Supervisors and owners make employment decisions that can create liability for the firm when a dispute develops.
Defense Costs Can Be Significant
Even a claim the firm disputes can require attorneys, records, management time, and other costs to defend the business.
Small Firms Are Still Exposed
A growing engineering firm can face employment claims before it has a dedicated HR department or formal employment processes.
What to Review as Your Firm Hires
The right solution should reflect the firm’s actual services, agreements, people, projects, and growth plans.
Frequently Asked Questions
What does Employment Practices Liability Insurance cover?
EPLI can cover certain claims involving discrimination, harassment, wrongful termination, failure to hire or promote, retaliation, and other employment practices, subject to the policy terms.
Can a job applicant bring a claim against an engineering firm?
Yes. Employment-related claims can arise during the hiring process as well as after someone becomes an employee. Some EPLI policies specifically address claims brought by applicants.
Is EPLI the same as workers' compensation insurance?
No. Workers' compensation addresses covered work-related injuries and illnesses. EPLI addresses certain claims involving employment decisions, workplace treatment, and employee rights.
Can EPLI be included in a Business Owner's Policy?
Some insurers offer employment practices coverage as an endorsement or part of a broader package, while others use a separate policy. Limits and exclusions may differ between options.
When should a new engineering firm consider EPLI?
Hiring employees is a good time to review employment practices exposure. The need depends on the size of the workforce, management structure, locations, policies, and other risk factors.
