Understanding Employment Practices Liability Insurance (EPLI): An Overview

Employment-related lawsuits continue to rise over the years. Dealing with these issues can be extremely detrimental to your business. Luckily, you can rely on EPLI to protect your business in these situations. Employment Practices Liability Insurance is a policy that protects your business against any legal action taken by potential, current, or former employees.

Popular claims made by employees include discrimination, sexual harassment, breach of contract, invasion of privacy, and wrongful termination. You can add EPLI to your current business owner’s policy. While having EPLI is not mandatory, it is a valuable asset. This policy is available whether you operate a for-profit business or a non-profit business.

Why Is EPLI Important?

Lawsuits filed by current or former employees continue to rise. Even if you are innocent, these allegations can cause financial damage to your business and your reputation. Having EPLI can help you manage thousands of dollars’ worth of legal fees. The policy also enables you to pay for settlement if the person suing you is successful in his claims.

What Businesses Need EPLI?

If you hire employees to help operate your business, you need EPLI. Regardless of the work you do or the industry you are involved in, you are at risk. As a business owner, you have to make tough decisions, such as firing people. Because you are the final decision maker, you may be held accountable for your actions. Not all of your employees are going to get along with each other. Some of your employees may be held accountable as well. Therefore, you need to be prepared for potential false allegations. These types of employee-related lawsuits are generally excluded from standard liability policies. Without EPLI, you’ll have to handle the legal fees out of your own pocket, which in turn will strain your financial resources.

Other Things to Consider

As a business owner, you need to establish solid workplace policies. Make sure that your employees are aware that there is zero-tolerance for unprofessional behavior. Give all of your employees a handbook or guide that outlines all of the company’s policies. Your employees can consult the handbook whenever a potential issue arises. Train all of your employees and supervisors so that they are aware of the company’s expectations. Set up periodic seminars to perform performance reviews and allow your employees to address any issues that they may have. Adhere to a strong screening and hiring process to ensure that you are getting the right people for the job.

Consult with CF&P Insurance Brokers

To avoid unnecessary legal disputes, always try to promote a friendly and welcoming environment at your workplace. If you have more questions related to EPLI, contact our experts at CF&P Insurance Brokers. We will assess your business and assist you with custom-tailored policies suited to your unique needs.

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