Employment Practices Liability Insurance (EPLI) covers businesses against claims made by workers who allege that their legal rights as employees of the company have been violated.
While most suits are filed against large corporations, no company is immune to such lawsuits.
EPLI provides protection against many kinds of employee lawsuits, including claims of:
* Sexual harassment
* Discrimination
* Wrongful termination
* Breach of employment contract
* Negligent evaluation
* Failure to employ or promote
* Wrongful discipline
* Deprivation of career opportunity
* Wrongful infliction of emotional distress
* Mismanagement of employee benefit plans
The policies will reimburse your company against the costs of defending a lawsuit in court and for judgments and settlements. The policy covers legal costs, whether your company wins or loses the suit, with liabilities covered by other insurance policies such as workers compensation excluded from EPLI policies. These policies typically do not pay for punitive damages or civil or criminal fines.
To prevent employee lawsuits, educate your managers and employees so that you minimize problems in the first place:
* Create effective hiring and screening programs to avoid discrimination in hiring.
* Post corporate policies throughout the workplace and place them in employee handbooks so policies are clear to everyone.
* Show employees what steps to take if they are the object of sexual harassment or discrimination by a supervisor. Make sure supervisors know where the company stands on what behaviors are not permissible.
* Document everything that occurs and the steps your company is taking to prevent and solve employee disputes.
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Jonathan S. Carroll, ASLI, CRIS
Bradley & Parker
320 S. Service Rd, Melville, NY 11747
O - (631) 981-7600
D - (631) 650-4034
C - (917) 376-0075
F - (631) 981-7681
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