3 Things You Need to Know About Employment Practices Liability Insurance
If you run a business then you should be aware that your human resources policies on hiring and firing employees and the way employees claim to be treated in the workplace can develop into legal minefields, causing potential liability claims that could even bankrupt the business in worst case scenarios. When you take out Employment Practices Liability Insurance you have the knowledge your business is covered against some job-related claims made by employees or former employees.
Three important aspects of Employment Practices Liability Insurance (EPLI) that you need to recognize are:
- it is sometimes included within your standard business owner’s insurance policy or any other liability insurances you may have. The cover given under these policies may not be adequate, however. The questions you need to ask yourself are whether any cover you may have would be adequate if you were faced with liability claims from disgruntled former employees claiming workplace discrimination or wrongful dismissal
- EPLI usually covers workplace harassment and discrimination, emotional distress suffered by employees, wrongful discharge and possibly privacy-based or reputation-based claims. It does not usually cover OSHA violations or other regulatory violations, such as State Employment Law or Fair Labor Standards Act violations
- terms of EPLI cover can vary and will need to be negotiated for every state where your business operates.
When you take out EPLI you should be able to access expert legal counsel advice to assist in the unfortunate event of claims against your business. Your best defense against any claims of this nature, however, is to know the employment law in the states in which you operate your business and to ensure you have rigorous business practices in effect.