This moment in time is a turning point for employment practices and Employment Practices Liability Insurance (EPLI). Employees are fearful of retaliation and have kept harassment claims to themselves, but the media attention to anti-harassment has empowered them to step forward. Insurance experts claim no employer group is immune and to be prepared to see EPLI claims in all sizes of organization.
How will Employment Practices Liability Insurance protect your business?
As a business owner, you strive to hire qualified employees to work for you. Unfortunately not every hiring decision goes as planned. Even if an employee is terminated for legitimate reasons— such as poor attendance or unsatisfactory work habits—every termination opens the door for potential lawsuits. Employment Practice Liability Insurance can help protect you and your organization from costly, frivolous lawsuits. The policy is used to cover your risks due to some of the most common employment-related lawsuits, including the following:
- Wrongful termination: The discharge of an employee for invalid reasons.
- Discrimination: The denial of equal treatment to employees who are members of a protected class.
- Sexual harassment: Subjecting an employee to unwelcome sexual advances, obscene or offensive remarks, or the failure to stop such behavior.
- EPLI works to provide the necessary resources to defend your company against a lawsuit or to pay for a claim.
Evidence of desirable employment practices and policies may be required for an EPLI policy, and will certainly help defend against a suit (even for a small, home-based business with only a few employees). The underwriter may require a copy of the following policies to show that you are taking steps to reduce your risks:
- Sexual Harassment
- Equal Opportunity
- Leaves of Absence
- Hiring and Interviewing
- Disability and Accommodations
As costs for litigation and damage awards climb, experts predict that EPLI will only become more complex. The experts at The Flanders Group can help you understand your exposure and guide you through an evaluation of your options. For more information, call us at 800-462-6435.
Executive Vice President