Employment law has gone through a lot of regulation changes and there are more to come. Learn more about how to protect your business with Employment Practices Liability Insurance.

Lawsuits related to employment practices are a growing concern in the U. S. And abroad.
The U S Equal Employment Opportunity Commission, or EEOC, reports that there are around 100,000 EPLI claims each year.
As costs for litigation and damage award totals climb, experts predict that employment liability will become increasingly complex.
As a result, it is critical for business owners to understand their exposures and options for managing risks in this area.
Employment practices liability insurance is a policy used to cover risks due to some of the most common employment related lawsuits, which include:.
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.
Sexual harassment: Subjecting an employee to unwelcome sexual advances, obscene or offensive remarks, or the failure to stop such behavior.
EPL works to provide the necessary resources to defend your company against a lawsuit or to pay for a claim.
To best understand how to cover your EPL risks, it’s important to know the sources for potential issues, which include:.
Recruitment practices.
Employment applications.
Employment offers.
Employee orientation process.
Annual conduct reviews.
Enforcing performance policies.
Termination (often including improper documentation of the items listed above).
Employment law is complex and varies depending on the jurisdiction.
Third party EPLI coverage is also very important and is often overlooked.
This form of EPLI covers liability claims brought by non-employees against employees of the insured organization.
Typically these claims will arise from customers, clients, and vendors that interact with employees of your company.
Well-organized and credible employment documents can demonstrate fair treatment, deter litigation, ensure employee honesty, and should litigation occur, reveal the employee’s actions.
Evidence of desirable employment practices and policies may be required for an EPL policy, and will certainly help defend against a suit.
This can apply even for a small, home-based business with only a few employees.
The underwriter may require a copy of the following policies and procedures to show that you are taking steps to reduce your risks:.
Sexual harassment.
Equal opportunity.
Grievance resolution.
Please contact us with further questions on this or any other risk management topic. We will see you again soon!