Suit Yourself

Protect your company from employee lawsuits.
Magazine Contributor
1 min read

This story appears in the September 2007 issue of Entrepreneur. Subscribe »

You know employees can sue you for discrimination or sexual harassment, but did you know that they could also sue for negligent evaluation or deprivation of career opportunity?

You can make your legal minefield a little less treacherous with employment practices liability insurance, which typically pays for defending many types of employee lawsuits and for judgments and settlements (but not for punitive damages or civil or criminal fines). EPLI can be purchased alone or as an endorsement to your general business policy.

Even if you think you're doing a good job respecting employees' legal rights, this coverage is worth considering. But "EPLI should not be viewed as a panacea against employee lawsuits," says D. Allen Miller, managing director of HR consulting firm Business Advantage International Inc. EPLI "is intended to provide a safety net that mitigates risk for employers who have effective policies and practices ingrained in their company culture. Over time, EPLI does little to protect bad employers from bad management practices," Miller says.

Jacquelyn Lynnis a freelance business writer in Orlando, Florida.

More from Entrepreneur

Jason's expertise and experience can help you with storytelling, motivation, and pitching your business to media.
Book Your Session

In as little as seven months, the Entrepreneur Authors program will turn your ideas and expertise into a professionally presented book.
Apply Now

Are paying too much for business insurance? Do you have critical gaps in your coverage? Trust Entrepreneur to help you find out.
Get Your Quote Now

Latest on Entrepreneur

My Queue

There are no Videos in your queue.

Click on the Add to next to any video to save to your queue.

There are no Articles in your queue.

Click on the Add to next to any article to save to your queue.

There are no Podcasts in your queue.

Click on the Add to next to any podcast episode to save to your queue.

You're not following any authors.

Click the Follow button on any author page to keep up with the latest content from your favorite authors.