EPLI and protecting your Business

Are you a Business Owner? Are you a Human Resources Manager? Do you Hire, Terminate, Write Performance Reviews or directly supervise employees? Are you aware of the potential risks with the decisions you make and the behaviours your allow in your workplace?

Employment Practice Liability Insurance (EPLI) is typically an endorsement on your business policy that will help protect your business in the event of lawsuits for discrimination, improper relations with team members (employees), and harassment. With Farmers Insurance, certain (higher) levels of EPLI coverage also allow you access to a Virtual Human Resource Department.

Covering types of Harassment:

  • Physical
  • Verbal
  • Sexual
  • Emotional
  • Visual

Covering types of Discrimination:

  • Age
  • Race
  • Gender
  • Religion
  • Hobbies/Recreational Activity

Hiring / Termination Procedures

  • Not properly documented
  • Not properly administered
  • Based off discrimination

Other items covered:

  • Employee Benefits Mismanagement
  • Libel
  • Slander
  • Defamation
  • Invasion of Privacy


When you have employees you have to ensure you are protecting your business. Any of your supervisors, team leaders, managers and owners/partners have to respect your employees and treat them professionally. If you do not you could face serious consequences and large lawsuits and judgements. By having EPLI endorsement will help you defend yourself in court and help avoid paying out costly judgements potentially bankrupting your business. Contact your agent, or our agency for more information.


Video Transcript for the Hearing Impaired (Closed Captioning is embedded in the video):

Michael: Hey Ron, I got to talk to you about this Life Insurance Policy.

Ronald: Oh Cool… Hey did you see the debate last night, the Presidential Election Debate?

Michael: Oh yeah, I thought that was really good, I think, I think I’m going with George…..
Washington. Yeah he’s, He’s my guy!

Ronald: You sure?

Michael: Well yeah, he knows what he’s talking about.I think he’d be good for our country.

Ronald: I don’t know… I know I’ve heard good things but the Agency, we’re supporting Abraham Lincoln. So we’ve contributed to the campaign and everything and part of it, you gotta be a team player.
And we’re behind Lincoln.

Michael: I don’t know man… he’s not the right stuff…

Ronald: I don’t know – I know Washington did good in those battles and all but Lincoln, man,
he’s, he’s for the people. You need to go think about it.You let me know.

Michael: Are you saying I HAVE to vote for him?

Ronald: I’m just saying that our agency supports him and if you’re going to be on our team we all have to go the same way.

Michael: I don’t know if I like that.

Ronald: Well, we’ll talk about it.later. Let me look at this Life Policy.


Hey Everybody!!!! Ronald Hyre here, Farmers Insurance – Hyre Insurance Agency!

If you didn’t get that – we were just having some fun there – obviously Lincoln and Abraham aren’t, [uh] oh sorry, Lincoln and Washington aren’t running for Presidential election right now. But it brings up a very important topic.

We call it EPLI. Employment Practice Liability Insurance. It’s typically in your business policy. As a business owner you certainly should be aware of it, if you are a Human Resource Manager you should be aware of it. A lot of things get factored in under EPLI. Obviously conversations between employees can and they can be political, like this just was, it can be religious, it can even be about your date last night, how it went, relationship. And when your employees are talking about that, even though a direct conversation between two consenting employees there’s no problem – you can have a third employee behind the scenes, or a customer, that is offended and you can be sued and your EPLI could cover you if you were sued for that. But just in our [uhm] exchange here where I was basically implying that my team member Michael had to vote the way that our agency was voting – that can also be considered EPLI, discrimination, harassment, [uhm] and it would fall under your EPLI coverage.

Things you may not know about though, as far as harassment goes. Visual Harassment. So Sports Illustrated just recently came out with their swimsuit edition – if an employee brought that into work and there were other employees that took offense to that – you could be at fault for that. You could have issues, you could have a judgement and lawsuit that again your EPLI would take care of that helping to defend you. Then you could look at a matter of Physical Harassment. You as a manager or leader – you may go up to another team member touch them on the shoulder or pat them on the back – Hey good job! Hey you know you might need to improve on this. Things like that. That could be construed as physical harassment, Sexual Harassment.

So you need to be really careful in your business, how you talk to your employees, how you treat your employees, and your policies and the conversations you allow and the behaviors you allow in your business. You can look at restaurants, and bars, and places like salons where you have clients that are interacting with your employees. If a customer or a client harrasses your employee you could be sued because you put that employee in that position and you didn’t do anything to stop it or deter it. So even in that case if you have the right coverage, again EPLI, we can extend your protection for that.

There’s a lot of little things that can actually come up that you may or may not be aware of, that as a business owner or a human resource manager it’s very important to have the proper business policy in place. One of the great things about Farmers Insurance and our business insurance and our EPLI endorsement, for certain levels we will even include a virtual human resource department. By that I mean there is a special website that you can go to and have access to documents, forms, templates, manuals, all these things that can help keep your business on track and have a HR department. There’s even a toll free phone number you can call if you have questions to make sure you are on the right track and you’re not violating any state or federal laws and that you’re being compliant as far as your human resources and things like that.

One last little thing to clarify to you, even in your hiring and termination; Discrimination. If somebody’s too old, too thin, too short, too tall, overweight, different race, different religious background – all those things if you discriminate based off of those can also result in a judgement for you and again another reason to have EPLI. Could be completely  unintentional [uhm] just not direct it could’ve been innocuous, it still could be construed and come back on you. So please make sure you protect your business.

Contact your insurance agent, review your policy, make sure you’re protected. If you’re not we’re always here for you, Ronald Hyre, Michael Shephard was my partner in crime here in the video. I have some more team members that are in our office. We are all here to help. We’ll gladly review your policy and if you’d like us to present a competitive quote we can certainly do that for you as well.

Thank you for your time, Make it a Great Day!

Stay tuned for more videos guys!


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