As a business owner, it’s important that you are aware of the different ways you can protect your company and your employees. Two of the most important tools at your disposal are Employment Practices Liability Insurance (EPLI) and Workers Compensation insurance. Since these two concepts are often confused, in today’s blog, we will discuss the difference between EPLI and workers’ comp.
What Is Workers Compensation?
Workers Compensation (also known as Workers’ Comp) is a state-mandated policy that covers your employees for job-related illnesses or injuries.
Workers Comp covers medical expenses, lost wages, and rehabilitation costs. It also includes benefits for the family of a worker who died while on the job.
If an employee gets injured or falls sick due to the job, then it is the responsibility of the Workers Compensation insurance to pay the expenses.
What Is Employment Practices Liability Insurance (EPLI)?
Employment Practices Liability Insurance, commonly known as EPLI, is a policy that covers your business from claims made by employees due to discrimination, harassment, wrongful termination, and similar issues.
EPLI is important because the risks it covers are usually not included in other types of insurance, such as general or umbrella liability.
An EPLI policy helps protect your company against legal costs that could arise from the claims listed above. In an increasingly litigious world, this type of insurance can be a game changer for your organization.
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EPLI vs Workers Comp
The main difference between EPLI and Workers Compensation is the coverage they provide.
While Workers Compensation covers work-related illnesses and injuries, EPLI focuses on employee claims that allege discrimination, harassment, wrongful termination, and other similar issues.
Another important difference is that Workers’ Comp is mandatory in most states, while EPLI is not required by law.
As a business owner, the ideal is to have both types of protection in order to secure your employees and your business. If you need making sense of commercial insurance, contact our experts at Carter Bradley today: We stand ready to help you get the customized protection you need to enjoy peace of mind and focus on managing your business.
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At Carter Bradley, our team is solely focused on your unique needs to find the best prices and coverage you require for your business, home, auto and life insurance.