Employment Practices Liability Insurance (EPLI) is a coverage that most businesses should have, but don’t. EPLI bridges a major gap in an insurance package because it provides liability protection for several situations that are specifically excluded in a General Liability Policy.
Your reaction to bad behavior may be completely justified. It may even be a smart business decision. But, if you’re sued and have to go to court to defend yourself, the defense costs will be out of your pocket, unless you have Employment Practices Liability Insurance, and these costs can be huge.