Employment claims filed by employees are on the rise in the United States. If your company has inadequate insurance coverage, the consequences resulting from a lawsuit could be devastating.
Employment Practices Liability Coverage
Employment Practices Liability Insurance, known as EPLI, protects your business when unwanted claims are made by unhappy employees. There are a number of EPLI claims scenarios for which you must be prepared. Even if the claim is unfounded, you may be responsible for legal fees, and the company’s reputation could also suffer.
Common scenarios include the following:
- Discrimination – Claims of exclusion based on gender, race, or age are prevalent these days.
- Failure to hire – The Americans with Disabilities Act protects certain disabled persons from being overlooked for potential jobs or promotions. Disabilities include, among others, blindness, deafness, and epilepsy. If someone feels they have been overlooked due to their disability, they may file a claim.
- Harassment – The most common claim is due to sexual harassment. Any unwanted verbal or physical sexual advances are prohibited.
- Retaliation – If an employee feels they have been discriminated against, they may also fear retaliation from management.
To reduce the risks of employee claims, companies benefit from developing a set of workplace policies that establish boundaries and inform employees of workplace laws and unacceptable behaviors.
EPLI coverage, along with sound workplace policies, helps to protect your business from unwanted claims.