What is EPLI and why does your business need it?

Lawsuits in the workplace are an unfortunate reality. This is true regardless of the size of your company—small businesses with only a few employees can be just as vulnerable as large corporate entities when it comes to the risk of employment-related claims. 

If you aren’t prepared or protected in the event of litigation, the outcomes could significantly cut into your finances and damage your reputation. 

How can business owners protect themselves? EPLI policies.

One way to proactively prepare for legal events is to ensure you are covered by an Employment Practices Liability Insurance policy or EPLI.

EPLI policies are designed to protect your business (and you) against claims stemming from employment-related circumstances. Some examples could be a wrongful termination claim, allegations of discrimination, and sexual harassment lawsuits. 

When your business is covered under an EPLI policy, you can have peace of mind that these types of situations, and more, are covered by insurance. 

How does Rippling help? 

Rippling offers a solution that automates compliance requirements for businesses to help prevent claims from arising and also includes coverage for your business under a robust EPLI policy if claims do occur: Professional Employer Organization or PEO.

A PEO is a co-employment business model where a contractual relationship defines shared responsibilities between multiple organizations. Under a PEO, employees are employed by both the business (you) as the “worksite employer,” and the PEO, as the “administrative employer.”

The PEO allows employers to access perks like signing up for large group benefits, offload state and local tax registrations, and automate other compliance tasks that typically fall on the worksite employer’s shoulders. 

Rippling PEO extends coverage under its EPLI policy to all worksite employers as part of its robust package of services that provides up to $1 million in coverage for each claim made. When your business partners with Rippling PEO, you get the peace of mind that your business will be better prepared to prevent claims before they occur and be protected for up to $1 million per claim in the event of an employment-related claim occurring. 

Not interested in co-employment but still want to take advantage of compliance automation and the benefits of EPLI protection? Rippling also offers an Administrative Services Offering (ASO) which includes most of the PEO perks without entering a co-employment agreement. 

To learn more about our PEO and ASO offerings, book a demo.

Be proactive to protect your business—and yourself

Employment-related claims are an unfortunate reality to consider when running your business. By ensuring your business is covered under an Employment Practices Liability Insurance (EPLI) policy, you are investing in a proactive approach to protecting yourself and your organization from legal attacks that could damage your finances or reputation.

Rippling and its affiliates do not provide tax, accounting, or legal advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal, or accounting advice. You should consult your own tax, legal, and accounting advisors before engaging in any related activities or transactions.

last edited: November 15, 2023

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The Rippling Team

Global HR, IT, and Finance know-how directly from the Rippling team.