Why You Need Employment Practices Liability Insurance For Your Business

July 03, 2014

Employment-related lawsuits are a growing concern for employers of all sizes, including home-based businesses. Employment Practices Liability (EPL) Insurance is a policy used to cover your risks due to some of the most common employment related lawsuits including:

  • Wrongful termination - The termination of an employee for invalid reasons.
  • Discrimination - The denial of equal treatment of 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.

How Employment Practices Liability Works

EPL works to provide the necessary resources to defend your company against a lawsuit or to pay for a claim. Even in the best working environments there are many opportunities for an employee to become disgruntled resulting in a lawsuit or charge.

To best understand how to cover your EPL risks, it's important to know the potential source of concern:

  • Recruitment practices
  • Employment applications
  • Employment offers
  • Employee orientation process
  • Annual conduct reviews
  • Enforcing performance policies
  • Termination (or improper documentation of the items listed here)

Employers of all size are at risk

Many business owners think of their employees as family but it only takes one infraction against complicated employment laws to trigger charges. Large and small companies are at risk. Employment law is complex and varies depending on the jurisdiction.

Take Control

Be prepared. Well organized and credible employment documents can demonstrate fair treatment, deter litigation, ensure employee honesty, and, should litigation occur, they can demonstrate the employee's actions. You can also take control of the situation by making sure your business has adequate protection for this exposure to financial loss. Other types of business policies will protect your company from outsiders' claims, however, not claims from your own employees

Call us today to learn more about Employment Practices Liability (EPL) Insurance.