You make decisions each day on a range of issues, including hiring, firing, compensation, promotions, and the work environment. Every one of these decisions impacts your employees. Depending on the outcome, your decision could end up resulting in a claim related to wrongful employment practices.
These types of claims can disrupt business, hurt morale, damage your reputation, and lead to serious financial damages. Thankfully, employment practices liability insurance (EPLI) can provide you with protection from the above risks.
Specifically, EPLI insurance provides the following to policyholders:
Coverage for alleged acts
EPLI insurance not only protects organizations from actual wrongful acts, but alleged acts as well. Specifically, EPLI coverage can safeguard an organization from claims related to discrimination, harassment, retaliation and wrongful termination.
Timely responses to lawsuits
Employees suing their employers is common in this day and time, so you will want to be prepared. This is especially important when you consider there is no cap on how much a jury can award, and that settlements in employment-related cases can easily reach six figures.
Access to legal help
Strong EPLI policies provide you with access to legal resources. This can prove invaluable if you need advice quickly.
Risk management strategies
While employment-related lawsuits can arise at any time, organizations that take the time to implement basic risk controls are better equipped to avoid claims altogether. Many insurance companies provide access to risk management training and human resources consulting. These services can greatly reduce the likelihood that your company is sued by an employee.
Additional protection for your directors and officers
While directors and officers (D&O) insurance can defend against employment-related lawsuits, dedicated EPLI insurance is necessary for many organizations. Having a policy that provides separate coverage for lawsuits connected to wrongful terminations, discrimination, invasion of privacy and similar employment claims ensures that the limits on your D&O policy aren’t exhausted unnecessarily.
Claims for wrongful employment practices are on the rise and often lead to business interruptions and costly claims.
In order to truly protect your organization, it’s critical to seek EPL insurance. To learn more, contact us at The Turner Agency, Inc.
