What is employment practices liability insurance (EPLI)?
As an employer, you care about making your employees and management staff feel valued. But employment practices liability risks remain a real threat - despite every good intention and effort to smoothen relationships with your team.
EPLI coverage offers protection for claims that result from employees alleging various employment-related issues—such as discrimination, harassment, and wrongful termination.
Does your company need EPLI?
Most large corporations are no stranger to employee allegations made against their top management. So they tend to have comprehensive EPLI coverage plans in place to deal with just about any employment lawsuit. Factually, however, it’s the small business or brand-new start-up that may be the most vulnerable to employee allegations.
Although your organization may not be as large as your competitors, you should not skimp on comprehensive EPLI coverage. Employment claims can impact organizations of every size in every industry and cause severe reputational, financial, and emotional damage - even before it reaches the courtroom.
What are some employment practices liability issues?
Employment liability largely centers around claims regarding:
- Discrimination (based on sex, age, race, or disability)
- Wrongful termination or discipline
- Sexual or emotional harassment
- Failure to employ, promote, or provide career opportunity
- Contract breaches
- Mismanaged employee benefit plans
New hires present the most significant threat in this department. Recruits who either don’t make the cut or are fired after a few hours on the job (because of poor attendance or performance) can stir up the employment claims pot. But, you can prevent this from happening by:
- Fine-tuning the screening and background checking procedures.
- Issuing transparent, equal employment opportunity statements and zero-tolerance policies regarding discrimination, substance abuse, and harassment.
- Evaluating employee performance and recording issues regularly.
However, prevention doesn’t always work; sometimes, you need to rely on an effective aftermath strategy to minimize the reputational and financial losses caused by damaging employee allegations. EPLI covers the defense costs and damage fees arising from the above issues, helping your business bounce back from the ordeal of employment lawsuits.
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How much will EPLI cost your company?
Insuring an organization against employment liability risks can vary in cost, depending on:
- The number of employees
- The number of prior lawsuits filed against the company
- The percentage of employee turnover
- The adherence to federal and state employment laws and practices
We’ve figured out Employment Practices Liability Insurance.
Employment practices and laws evolve every day. With various social movements, changing economic conditions, and unexpected events like the COVID-19 issue, employment claims have been on the rise.
You don’t have to respond to this changing risk landscape alone. With Carriage Trade Insurance Agency, you can navigate through the EPLI waters with ease. We help employers in various industries understand and clarify Employment Practices Liability Insurance coverage. Contact us to find out how we can provide you with the insurance coverages and solutions you need.