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Employment Practices Liability Insurance

By October 27, 2011 August 22nd, 2018 Uncategorized

At The Flanders Group we focus on working with employers who run Marinas, Nursery and Landscape operations, Refuse haulers, Commercial Real Estate owners and managers, RV & Auto Dealers, and Manufacturing, and we find that hiring and firing practices are legal minefields that are best navigated by the use of Employment Practices Liability Insurance (EPLI).

It is important that a business has clear policies that are applied consistently to each employee. Such policies must directly relate to the duties of their job. Do you know what type of decisions could trigger a claim? For example, is it legal to terminate:

  • a driver with a bad driving record?
  • an employee who is rude to your customers?
  • an employee who swears at customers?

The answer is not simple. A business’ action may depend upon circumstances such as whether an employee’s duties involve driving a company vehicle, or directly involves customers and if the company can prove that such behavior fails to meet the applicable job standards.

One key issue is having access to legal counsel that has expertise in this special area of the law. Another key issue is documenting the essential job functions and establishing measurable standards for each position. Use of regular performance reviews and applying the standards equally to each employee is a smart employment practice. The best defense against employment practice claims is to know the law in your state and then having policies and procedures that meet or exceed its legal standards.

The U.S. Equal Employment Opportunity Commission offers numerous publications addressing different employment laws from their website. The Flanders Group can also arrange your EPLI insurance with a carrier that provides support services such as an attorney on retainer who can be consulted before you take action against an employee. Policies and premiums for this type of coverage vary tremendously among insurers so depend on The Flanders Group to develop the best choices for Employment Practices Liability Insurance.