What is employment practices liability insurance (EPLI)?
In case of lawsuits filed by employees, EPLI protects the businesses against claims by workers/employees. While most suits are filed against big corporations, smaller companies are equally susceptible to such claims and suits.
EPLI can provide protection against different kinds of employee lawsuits, some of which are:
- Wrongful termination
- Sexual harassment
- Discrimination
- Breach of employment contract
- Failure to employ or promote
- Mismanagement of employee benefit plans
The cost of EPLI will depend on your type of business, risk factors, and the number of employees in the company. The policy helps cover legal costs, irrespective of the outcome of the lawsuit.
As a company it is important to prevent employee lawsuits, educating and sensitizing managers and employees on various labor laws. This can help avoid future problems and law suits being filed. Here are some of the practices that can be followed:
- Create robust and effective hiring processes.
- Train and educate the employees from time to time on company policies and work ethics.
- Document everything that happens and how your company is handling the situation. This will help in preventing employee disputes.
Let EZ Online Services help you choose a policy that will fit your needs. Protecting all your assets, whether business, personal or both, is our primary goal. An insurance policy chosen by an expert can lessen the impact of some of life’s most common, yet unforeseen accidents.
