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  Oracle Tips by Burleson

Contemplate Acquiring Insurance

Employment-Practices Liability Insurance (EPLI) indemnifies businesses against the costs of employment-related litigation. Wrongful termination lawsuits can be very costly to defend, making EPLI an attractive option for minimizing litigation costs.

Insurance companies determine the EPLI premium based on the:

  • Applicant company’s industry

  • Number of employees

  • Employee attrition rate


48 percent of survey respondents amongst 100 Human Resources executives indicated they have purchased Employment-practices liability insurance.

- EPL Survey Report, Assurex International, the University of Miami and the American Mediation Institute, 1998.

Conditions of the EPLI policy and arrangement that need to be addressed by the applicant company include:

  • Determine if all or specific claims will be covered.

  • Define which party selects the attorneys.

  • Set forth the party that has the authority to settle the lawsuits.

  • Ensure that those who handle the claims in the insurance company are attorneys themselves and experienced in employment law.

  • Acquire coverage for punitive damages if allowed within the company’s State of residence.

  • Determine if pre- and post-judgment interest and premiums for appeals are covered.

  • Outline the conditions by which the insurance company may cancel the policy.

The above book excerpt is from:

You're Fired! Firing Computer Professionals

The IT manager Guide for Terminating "With Cause"

ISBN 0-9744486-4-8

Robert Papaj


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