Employment practices liability insurance covers wrongful acts that arise during the employment process. Claims vary a great deal, but each one can be devastating for a company that doesn’t have adequate coverage.
The most common EPLI claims center around disgruntled employees. Let’s look at a few examples.
- Discrimination – An employee cannot be terminated or discriminated against because of age, sex, race or ethnicity. Someone who feels they have been wronged can file a legal claim.
- Sexual Harassment – A manager may be sued if they make unwanted sexual advances or create an uncomfortable working environment for someone.
- Retaliation – An employee who comes forward with a complaint may be the victim of retaliation in the future.
- Failure to Promote – If an employee feels they have been overlooked for a promotion because of discriminatory or retaliation reasons, they may seek legal counsel.
Business owners must realize that they could be held liable for paying the legal fees even if they’ve done nothing wrong.
Proactive Measures to Reduce Risks
It’s wise to develop an employee handbook that explains the company’s behavioral policies. Each employee must read and sign a document stating they understand and will comply with the provisions.
Protect your business and your employees from dangerous employment practices litigation.