Employment Practices Liability Insurance (EPLI) covers businesses against claims by employees that their legal rights have been violated. Some insurers provide this coverage as an endorsement to their Businessowners Policy.
EPLI provides protection against:
- Breach of employment contract
- Deprivation of career opportunity
- Discrimination
- Failure to employ or promote
- Mismanagement of employee benefit plans
- Negligent evaluation
- Sexual harassment
- Wrongful discipline
- Wrongful infliction of emotional distress
- Wrongful termination
To avoid employee lawsuits, teach your employees how to handle the situations above and the legal implications to themselves and the business. Create hiring and screening programs to avoid discrimination in hiring. Post company policies and place them in the employee handbook so everyone is reminded of them. Show employees how to handle sexual harassment or discrimination. If something happens, document everything that occurs and the steps you are taking to prevent and solve the problem. If you have any question about your obligations, check with the both the U.S. Department of Labor and your State labor department to find out the exact laws you must follow.
