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What You Need to Know About EPLI

By Steven T. Catlett and Michael J. Gray
October 02, 2003

Even one relatively simple single-plaintiff employment discrimination lawsuit may result in substantial losses, which can be devastating for small- to mid-sized employers, particularly if punitive damages are awarded. And the legal expenses of defending such a lawsuit, even if successful, may be just as costly as losing the court battle. Moreover, the number of discrimination cases remains on the rise ' sexual harassment charges alone jumped nearly 50% from 1992 to 2001.

In response, the insurance industry has developed a specific product, Employment Practices Liability Insurance (EPLI), designed to cover costs and liabilities arising out of claims for wrongful employment practices. EPLI policies, however, may not be the entire answer.

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