EPLI Coverage for Tech Companies: An Overview 

The California tech industry brims with potential and innovation, but as a part of this sector, you must also carefully manage various workplace risks. The right business insurance package may require multifaceted coverage, including that which may address internal risks related to employment practices liability claims.

What Is EPLI and Why Does It Matter for Tech Companies?

Employment practices liability insurance (EPLI) is an integral part of many businesses’ coverage portfolios. Despite your best efforts, miscommunications, misunderstandings and other internal interactions could result in a toxic work environment that may lead to costly lawsuits and poor workplace culture.

With this in mind, EPLI can provide crucial financial protection, potentially covering claims made by former, current and prospective employees alleging improper workplace practices. Even if your company is innocent of any wrongdoing, lacking appropriate coverage could leave you without the resources to set the record straight.

Key Risks Covered by EPLI

EPLI policies can help pay for various losses and expenses arising from claims, including attorney fees, settlements and judgments. Your business may be able to access financial aid in response to various allegations, such as the following:

• Discrimination based on age, gender, race or other protected characteristics
• Harassment, bullying or other hostile work environment allegations
• Wrongful termination or demotion
• Inadequate evaluation or failure to promote
• Retaliation against employees for whistleblowing or reporting concerns
• Breach of employment contract
• Mismanagement of employee benefits

Why Tech Companies Need EPLI

For tech companies, which may require rapid hiring, remote work arrangements and innovative business models, staying compliant with labor laws and financially protected against possible employment practices liability claims can be especially important. Lacking coverage could mean that even the most promising startup never truly takes off.

How Our Team Supports Your Business

At Silicon Valley Risk & Insurance Services, we stay up to date on local and state employment laws and work closely with tech companies to assess their unique risks and tailor EPLI solutions that fit their needs.

Contact us today to learn more about your coverage options or get a free quote.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.