Karen ran a real estate brokerage firm in Lafayette with a strong team of agents, a steady stream of clients, and a solid reputation. But everything changed when one of her former employees filed a claim, alleging discriminatory hiring practices. The claim was unfounded, but the legal process dragged on for months, costing her firm tens of thousands in legal fees and endless stress. That was when Karen realized that general liability insurance couldn’t protect her from internal disputes—and why she needed Employment Practices Liability Insurance (EPLI).
Employment Practices Liability Insurance helps cover legal costs when your firm faces claims related to employment issues like discrimination, wrongful termination, or harassment. Even if the claims are baseless, the expenses tied to defending them can threaten the financial stability of a small or mid-sized brokerage.
Brokerage firms often focus on external risks—property damage, professional liability, or auto claims—but internal risks can be just as disruptive. EPLI exists to fill that gap.
Real estate offices aren’t immune to tension. Fast-paced sales environments, commission-based pay structures, and high-pressure deals can lead to misunderstandings or disputes. When employees or contractors feel they’ve been treated unfairly, your firm can be on the receiving end of an expensive legal battle.
Real estate businesses also work with a mix of full-time staff, independent agents, and support personnel. That kind of workforce adds complexity when it comes to employment law.
A properly structured EPLI policy for a real estate firm can offer protection against:
These could be based on race, gender, age, religion, or other protected categories under state and federal laws.
Whether involving a manager or between employees, these claims are some of the most common and damaging.
Even when you follow all HR procedures, a former employee may claim their firing was unjust.
Employees who file internal complaints or report issues to outside agencies may claim retaliation if they feel they were punished or sidelined afterward.
With many brokerages working with contractors, the risk of an agent claiming they were misclassified is real—and costly.
Louisiana employment laws can differ from federal standards and often come with their own set of rules. EPLI helps real estate firms comply with local labor requirements while offering protection in the event of a claim.
Plus, Louisiana is known for its close-knit communities. News spreads fast. A public employment dispute could harm your reputation before the facts even come out.
Many business owners are tempted to skip EPLI because they think their general liability or professional liability policy will step in. That’s not the case. Without EPLI, you’re on the hook for attorney fees, court costs, and settlements if something goes wrong.
Just one claim—even if you win—can wipe out your cash reserves and disrupt your business.
Adding EPLI to your coverage does more than just protect you from lawsuits. It encourages better HR practices and shows your employees and agents that you take fair treatment seriously.
It also creates a structure for documenting discipline, terminations, and hiring decisions in a way that stands up in court if needed.
Work with an agent who understands the real estate industry. Not every policy fits the way brokerages are structured.
Disclose your use of independent contractors. This helps avoid gaps in coverage.
Review your employee handbook. Make sure it outlines harassment and discrimination policies clearly.
Train your team. Regular training helps prevent the very claims EPLI is designed to cover.
You already protect your listings. You carry professional liability to guard against deal disputes. But protecting your own team with EPLI might be the coverage you never knew you were missing.
You can’t always prevent someone from filing a complaint. But you can prepare for it, and that’s where EPLI comes in.
If you run a real estate brokerage or manage a team of agents in Louisiana, this type of insurance may be one of the most important tools in your back pocket. Reach out to Kastner Insurance today and let’s make sure you’re covered on every front—inside and out.
Founded in 2017, Kastner Insurance Group is a full-service, independent insurance broker based in Lafayette, LA. Our insurance agents specialize in offering a variety of insurance products tailored to individual and commercial needs, making sure clients receive personalized and comprehensive coverage options from a variety of insurance companies/insurance carriers.
With over 43 years of combined experience, the team at Kastner Insurance Group is dedicated to providing expert advice and exceptional service. They proudly serve professional offices and businesses across Lafayette city/parish, Youngsville, Broussard, Baton Rouge, New Orleans, Alexandria, Acadiana, and statewide in Louisiana.
Call us today or visit our website for a customized quote.
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