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March 25, 2024

Employment Practices Liability Insurance for Manufacturers

As a member of the manufacturing industry, your business understands that its employees are among its most valuable assets. Amid this sector’s inherent risks and perils, which may include the frequent use of heavy machinery, motor vehicles and hazardous materials in a fast-paced work environment, the value of a well-trained, dependable and satisfied workforce is paramount.

However, even if your company makes consistent efforts to ensure its employees are treated with dignity, respect and fairness, specific incidents and miscommunications can have significant ramifications that could lead to employees leaving their positions and failing lawsuits alleging illegal workplace dysfunction. In these situations, resulting financial and reputational consequences could be devastating, necessitating appropriate insurance coverage.

liability insurance

What Is Employment Practices Liability Insurance?

Employment practices liability insurance (EPLI) is a crucial loss control measure for all employers regardless of size or industry. These policies establish a contractual agreement between your business and its insurance company and retain you the right to file a claim for financial assistance should a current or former employee, or even prospective candidate who never officially worked for you, file a lawsuit alleging employer misconduct.

Specifically, EPLI coverage can typically render financial aid for legal expenses, including attorney fees, court costs, settlements and judgments, in response to the following accusations:

  • Wrongful termination
  • Discrimination
  • Harassment
  • Improper hiring practices
  • Breach of employment contract
  • Mismanagement of employee benefits
  • Invasion of privacy
  • Negligent evaluation
  • Failure to promote
  • Retaliation
  • Wrongful discipline

Why Does My Manufacturing Business Need EPLI?

While all companies with employees should prioritize the importance of adequate EPLI coverage, investing in the right policy may be particularly valuable for members of specific sectors. In the fast-paced and inherently risky environments of the manufacturing industry, it may be more likely for incidents and actions leading to employment practices liability lawsuits to occur. For example, while attempting to meet a quota on a strict deadline, a supervisor or manager’s quickly delivered instructions could be misinterpreted or taken out of context, potentially leading to claims of improper behavior. Similarly, many positions in the manufacturing industry may require certain levels of physical prowess. However, your company must be careful to avoid discriminating against applicants or employees who are disabled, as failing to hire or promote could lead to costly legal action.

Get the Right Coverage

Ensuring compliant, law-abiding and fair standards within your workplace should be a top priority, but even when fully committed to these ideals, miscommunications and isolated incidents could lead to catastrophic consequences.

At Pitcher Insurance Agency, we’re ready to help on that front. Visit our website or call 847-705-5560 to learn more about EPLI and to ensure you have appropriate coverage for your manufacturing business.


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. 

Categories: Blog

Tags: Liability Insurance

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