The Clarity Blog

What is Employment Practices Liability Insurance?

on Aug 31, 2021 11:00 AM
Employment Practices Liability Insurance

As a manager or owner of a jewelry business, you have a lot of difficult decisions to make.

Even if they're not the first things that come to mind, hiring and firing decisions are probably some of the most difficult ones a manager or business owner need to make. There are a lot of emotions involved and sometimes financial stakes at play. Whatever the reasons, creating new ties with another person or severing old ones often result in high stress.

However, if you're asking yourself, "What is employment practices liability?" after a management decision has been made, you may find the answer after it's too late.  

Thankfully, you can be protected with Employment Practices Liability Insurance (EPLI).

What Does EPLI Protect Against?

EPLI protects your business from hiring to firing and every employment-related issue in between. It The coverage can even provide protection before an employee is hired. Some individuals have claimed discrimination during the hiring process after they were not selected for a job they felt they were qualified for. 

Aside from the wrongful refusal to employ a qualified applicant, these are some other common claims scenarios that an EPLI policy from Jewelers Mutual Group covers: 

  • Wrongful failure to promote, wrongful deprivation of career opportunity, or employment related misrepresentation
  • Wrongful demotion, evaluation, reassignment or discipline
  • Wrongful termination, including retaliatory or constructive discharge
  • Unlawful work-related harassment, coercion, discrimination or humiliation as a consequence of race, color, creed, national origin, marital status, medical condition, gender, age, physical appearance, physical and/or mental impairments, pregnancy, sexual orientation or sexual preference or any other protected class or characteristic established by any applicable federal, state or local statute
  • Slander, defamation or libel through oral or written publication, or violation or invasion of a right of privacy 

To learn more about employment laws, visit the Equal Opportunity Employment Commission's website.

Who Can Make an EPLI Claim? 

It doesn’t need to be an owner or a partner of a business acting unprofessionally, just as the harassment doesn’t need to happen to an employee. Claims can result from employee-to-employee or employee-to-third-party harassment. 

Aside from applicants or any former, current, leased or temporary workers, an EPLI policy from Jewelers Mutual also covers against claims brought forth by these individuals:

  • Clients
  • Customers
  • Independent contractors
  • Officers who are not owners or partners

How Much Does EPLI Cost? 

As with any insurance policy, premiums are dependent upon several factors and pricing should be tailored based on the risks of the business being insured. 

Here are a few key determining factors that may result in a higher premium. 

  • More employees
  • An active history of EPLI claims
  • Higher limits of coverage
  • Lower deductible

Considering the incurred costs of not only potential damages from a claim but also legal defense, this coverage provides tremendous value.

Stay Up to Date on Employment Best Practices

While an EPLI policy can ultimately shield you from any direct costs, the time and frustration that can mount from a legal battle isn’t something the owner of a jewelry business wants to face. Your best defense begins with knowledge, which is why Jewelers Mutual provides more than just an EPLI policy. 

Our customers also receive two complimentary resources to help prevent claims:

  • provides online support, education and training to help reduce employment risk in your workplace. You have access to:
    • Model workplace forms and policies covering a wide range of topics
    • Web-based training
    • Knowledge vault
    • Additional features and resources such as a comprehensive Model Handbook from The McCalmon Group at a reduced rate.
  • An employment practices consultation legal hotline that connects you with an attorney at Jackson Lewis, LLP to discuss any concerns, including the appropriate steps to take when making a disciplinary decision. Other topics the attorneys can assist with include:
    • Appropriate steps to take when investigating reports of harassment. 
    • How federal and state employment laws can apply to your workplace issues. 
    • Whether the FMLA or state leave laws apply to your company and how to administer.
    • Overview of your jewelry business’s rights with respect to the types of actions to consider when an employee fails to perform job duties.

Learn about other add-on coverages available with your business policy and work with a Jewelers Mutual agent to help you find the right coverage to fit your needs.