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Employee Practices Liability (EPL) and Directors and Officers (D&O) insurance addresses potential liabilities companies face when sued for perceived wrongful conduct by the company. The two have similarities, but EPL addresses suits brought by the firm’s employees or applicants, while D&O covers non-employees, typically customers or investors. Contact the Einstein Insurance team, serving Portland, OR, if you have questions about commercial insurance, including EPL and D&O.
Distinguishing EPL and D&O Insurance
EPL offers financial protection against various employment-related claims. Employees or applicants for positions in a company may claim they faced discrimination, harassment, wrongful termination, failure to hire or promote, or workplace issues. These claims may result from the behavior of anyone affiliated with the company, including line employees, managers, directors, and officers.
D&O, on the other hand, applies only to company directors and officers and protects them from external lawsuits related to their business decisions. An external claimant may argue that a director or officer was negligent, made errors, demonstrated poor financial management, or acted wrongfully in their capacity with the company.
Both policies are critical for protecting businesses against the potentially significant legal costs and damages resulting from a suit. To avoid the opportunity for such suits, insurers often require policyholders to develop and maintain appropriate training and managerial practices, and some insurers offer support to companies that need to build those procedures. As with other insurance policies, companies with good practices and track records pay lower premiums than those found lacking.
Working with Einstein Insurance
Einstein Insurance serves the Portland, OR, community’s personal and business insurance needs. Allow us to create an insurance plan to protect your business by calling (503) 336-4348 today or stopping by our office.
