EPLI
EMPLOYMENT
PRACTICES
LIABILITY
INSURANCE
KATHY HENRICH , MBA , CSA , LUTC , COMMERICAL INSURANCE ACCOUNT EXECUTIVE , GENERAL INSURANCE SERVICES
BY KATHY HENRICH
Employment-related lawsuits are on the rise and are a growing concern for employers of all sizes , including smaller home-based businesses . In fact , it ’ s been reported that 1 in 5 cases in civil courts is an employment-related lawsuit . Claims such as discrimination , wrongful termination , and harassment are among the most costly and timeconsuming issues an employer can face . Moreover , such claims can seriously impact an organization ’ s reputation and stability . This is the reason it is critical for businesses to implement effective measures to avoid Employment Practice claims .
So , what is Employment Practices Liability Insurance ( EPLI ) and why do you need it ?
EPLI IS A POLICY THAT COVERS YOUR RISKS FOUND IN SOME OF THE MOST COMMON EMPLOYMENT- RELATED LAWSUITS .
They include the following :
• Sexual harassment ( subjecting an employee to unwelcome sexual advances , obscene or offensive remarks , or the failure to stop such behavior )
• 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 )
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 documents or policies to show that you are taking steps to reduce your risks :
• Annual conduct reviews
• Employment applications
• Enforcing performance policies
• Employment offers
• Employee orientation process
• Improper documentation of the items listed above
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