Raffi Kodikian on Why Employment Practices Liability Coverage is Essential for Your Labor Law Firm

Raffi Kodikian

October 11, 2021

Raffi Kodikian on Why Employment Practices Liability Coverage

Employment practices liability (EPL) coverage is an insurance product designed to protect businesses from damages arising from lawsuits regarding the employer-employee relationship. While most labor law firms are much more focused on handling such lawsuits than they are defending themselves from them, EPL coverage is a necessity for firms of all types – especially today when employment litigation is becoming increasingly common. To help explain what EPL coverage is and the protection that it provides, we’ll take a look at advice from insurance specialist, Raffi Kodikian, on why EPL coverage is essential for your labor law firm. 

What is EPL Coverage? 

EPL coverage is a form of liability coverage that is meant to protect businesses from employment risks and the cost of claims that originate from the business’s employees. According to Raffi Kodikian, EPL coverage is able to shield businesses from the financial fallout entailed by a variety of employer-employee claims, including allegations of harassment, wrongful termination, and discrimination. EPL coverage is able to cover any legal expenses associated with defending these claims as well as cover any money that a business is ordered to pay to the claimant in the event that they lose the case or decide to settle out of court. 

Why Labor Law Firms Need EPL Coverage 

Like any type of business, labor law firms employ a range of employees – any one of which could end up filing a lawsuit against the firm. EPL insurance has long been an important line of defense for businesses of all sizes, but Kodikian says that in today’s society, it is more vital than ever before. With an increased spotlight on social issues such as harassment and discrimination in the workplace comes an increase in the likelihood of a lawsuit being filed against your firm. Social movements such as the #MeToo movement and the fight for racial justice have placed employers under a magnifying glass — and the field on which these movements wage their battles against injustice is often the court of law. 

With this being the case, Raffi Kodikian advises that EPL insurance is something that every labor law firm should consider. Those working in the field of labor law understand far better than most just how costly employment lawsuits can end up being for the defendant. Even in the event that the case is ultimately dismissed, the legal fees that an employer is forced to pay alone are often staggering. 

According to Raffi Kodikian, paying for EPL coverage is a small expense that could very easily end up saving labor law firms from substantial damages. In today’s world, leaving your firm vulnerable to employment lawsuits is simply not a risk worth taking.