What Is Employment Practice Liability Insurance?
Employment practice liability insurance, or EPLI, is a special type of liability insurance coverage that helps schools when employees file legal claims against them for work-related activities. These claims might include wrongful termination, discrimination, harassment, or breaches of employment contracts.
For Rebecca’s school, EPLI could have provided the financial costs needed to handle the lawsuit. It would have covered legal defense costs and, if necessary, any settlements or judgments. By having EPLI, schools can focus on providing a great environment for students while dealing with employment-related claims responsibly.
Why Private Schools Need EPLI
Private schools often have close-knit communities with high expectations for fairness and professionalism. While these relationships are one of the things that make private schools special, they can also create unique financial risks. When staff members feel they have been treated unfairly, the fallout can be expensive lawsuits that are damaging to the school’s reputation.
In Rebecca’s case, even though it was in Texas, her lawsuit created stress for both the administrators and other staff members. Without EPLI, the school had to pull money from other areas to cover the legal costs. The insurance company will help secure a legal team to defend the school as well as provide the defense funds so that budgets are not impacted. That peace of mind can be worth a lot in the litigious world that we live in.
How EPLI Protects Private Schools
Employment practices liability insurance provides valuable protections that help Texas private schools manage employee-related lawsuits and complaints effectively. These protections extend beyond just financial protection—they also help schools navigate difficult situations while maintaining their operations and focus on education. Here are some key ways EPLI safeguards schools:
- Legal Defense: EPLI covers the costs of finding and hiring lawyers, paying court fees, and handling other extra expenses associated with the legal actions. Lawsuits can be lengthy and expensive, and this coverage helps schools manage this process without draining their budgets.
- Settlements and Judgments: If the court orders the school to pay money to the employee or a settlement is reached out of court, EPLI takes care of these payments. This protection ensures that schools don’t have to redirect funds from other critical areas, like classroom resources or staff salaries.
- Reputation Management: Employee disputes can damage a school’s reputation, especially in close-knit communities. EPLI helps schools address concerns and either keep or rebuild trust with families, staff, and the wider community after a legal challenge.
By providing these benefits, EPLI gives schools the ability to handle disputes confidently while protecting their financial stability and reputation.
The Risks of Operating Without EPLI
Insurance costs have been soaring over the last three years. It is understandable to find savings. Running your school without EPLI, you face significant risks when dealing with employee claims. A single lawsuit can result in thousands of dollars in legal fees and settlements, which might force schools to make tough financial decisions. Money that should be used for student programs or facility improvements might need to be diverted to pay for legal costs instead.
More importantly is how these disputes can hurt a school’s reputation. When trust is broken, it can take years to rebuild relationships with staff and families. Enrollment may drop, and staff morale may suffer, creating even more challenges for administrators to manage. EPLI acts as a safety net for covered claims, allowing schools to handle these situations without jeopardizing their future.
Finding the Right EPLI Coverage for Your School
Getting EPLI starts with working with a knowledgeable private school insurance agent who understand the unique needs of Texas private schools. The True Texas Education Insurance program offers customized risk management solutions designed to address the potential risks schools face in our current environment. This program is only available through Insurance For Texans, which connects schools with experienced, independent insurance agents.
These agents will ask information about your school’s staff size, policies, and workplace culture to create a plan that fits your unique needs. Annual reviews of your coverage types also helps keep your school prepared as it grows and changes over time.
Protecting Schools with True Texas Education Insurance
Rebecca’s story shows how easily employee disputes can lead to serious challenges for a school. Having the appropriate liability coverages helps private schools manage these risks as well as others. It is about protecting their finances, and maintaining their focus on students and staff.
The True Texas Education Insurance program offers private schools across Texas customized solutions for their insurance needs and is only available through Insurance For Texans. Click the button below to connect with an agent and protect your school from unexpected risks today!