3 Ways EPLI Protects Your Business

No employer hires an individual with the intent to provide an unhealthy work environment. However, mistakes happen and those mistakes can lead to lawsuits. Employment Practices Liability Insurance (EPLI) protects a company and its employees in the event of an unfair employment practices lawsuit. These types of claims cover a wide range of offenses such as:

  • Harassment
  • Discrimination
  • Failure to employ or promote

It is not always clear to business owners how they could end up embroiled in such a lawsuit. However, failing to invest in adequate EPLI coverage can bankrupt a business. The following scenarios illuminate how EPLI can help save businesses.

Emotional Distress

Workplaces can be stressful, especially during busy periods. However, if an employee feels his manager is creating stressful situations on purpose, he may file a lawsuit for intentional infliction of emotional distress. EPLI coverage protects the business as well as the accused manager.

Wrongful Termination

While EPLI provides coverage for a variety of situations, this type of suit is becoming much more prevalent. To avoid wrongful termination suits, business owners need to make sure that manager know what is grounds for legal termination and what is not. For example, managers cannot terminate employees because of their age, race, gender, or any other attribute not related to job performance.

Denying Employment

There are very few industries where characteristics such as gender or race affect job performance. As such, recruiters should not rely on these aspects during the employment process. If a prospective employee believes the interviewer did not hire her because of her gender, she may file a lawsuit for failure to employ. Just as managers cannot fire an employee due to their gender, employers cannot refuse to hire an individual for the same reason.

Implementing appropriate hiring and workplace practices can help reduce the likelihood of EPLI lawsuits. For example, employers can prominently display company policies around the workplace. A thorough and well-written company handbook can help as well. However, no business is impervious to litigation. Contact The Reilly Company Group to learn more about protecting your business with Employment Practices Liability Insurance.