When I talk to employers about insurance needs, they generally think about their employees – medical,
dental, life, etc. Yet, often employers neglect to cover the organization adequately.
Any employer with employees has risk. One of the first questions I ask clients when we begin working
together is if they have Employment Practices Liability Insurance (EPLI). EPLI covers businesses against
claims such as:
– Sexual harassment
– Wrongful termination
– Failure to employ or promote
– Wrongful discipline
– And more
Keep in mind that insurance is not a substitution for good management. To mitigate the chances of a
lawsuit, educate yourself, your employees, and your managers:
– Have a handbook that each employee signs clearly stating organizational and legal policies and
– Ensure your employees understand the steps to take if they are subject to sexual harassment or
discrimination. Provide regular training to staff and supervisors.
– Develop consistent hiring practices to avoid possible discrimination.
– Document all dispute/discipline encounters with employees.
– Train, train, train anyone managing employees.
The best defense is not needing a defense. Be proactive regarding risk in your organization. For those
situations out of your control, ensure you have appropriate protection.
*I am not an insurance agent and do not sell insurance coverage. For more information about EPLI coverage, please contact
your local insurance agent.
Too often, employers get involved in managing employees’ personal lives rather than focusing on thework they are paying an employee to accomplish.I