This type of insurance, or EPLI, is made for employers to protect them against allegations made by employees that could potentially harm the business. EPLI is more beneficial in newer businesses who are often vulnerable against employment claims, but can be used for large companies as well. In some cases, EPLI can be offered as an endorsement to a Business Owner's Policy (BOP) and a General Liability Policy (GL).
When hiring people from the public, you are never going to be 100% about your future employee. Although they seem harmless, they could potentially be a risk to your business if something were to go wrong. To avoid any hazardous employment lawsuit, make sure you and your business are covered with EPLI Insurance.