Employment Practices Liability
Hiring the right people can be an arduous task, so it’s important to protect them and your own company from claims based on employment.
Employment practices liability insurance (EPLI) provides coverage to employers against claims made by employees, including the following:
- Discrimination based on sex, race, age or disability
- Wrongful termination
- Harassment in the workplace
- Employment-related issues, such as failure to promote etc.
Small or new businesses often are the most vulnerable to employment claims, mainly because they lack a legal structure or an employee handbook outlining policies and procedures that direct hiring, discipline and termination of employees.
- Review potential loss exposures with your insurance agent
- Develop an employee handbook
- Create a job description for each position that clearly defines expectations
- Conduct periodic performance reviews of employees
- Develop a screening and hiring program to weed
- Use an employment application that contains an equal employment opportunity statement
- Institute a zero-tolerance policy
- Create an effective record-keeping system