Any privately held company that hires and fires people exposes itself to potential liabilities. That’s why every business with employees should carry employment practices liability (EPL) insurance.
An EPL policy is a risk management tool that protects your business against a range of claims made by current and former employees, independent contractors, and job applicants as well as vendors, customers, and others who interact with the business.
In short, this additional insurance mitigates risk by shielding the business against harmful litigation in the event of claims of:
- sexual harassment
- wage and hour violations
- wrongful termination or improper evaluations
- workplace violence or hostile work environment
- breach of contract
- employment discrimination
- Family Medical Leave Act violations
What ELP policies cover
We all know we are living in litigious times. Employers are well advised to get coverage against employment-related claims (including the growing trend of retaliation claims) and the expensive damages that may ensue. The wrongful acts that can be claimed can originate from among a broad spectrum of individuals, from part-time and seasonal employees to board members to volunteers or interns. The damages that are covered are also diverse; qualified damages may be settlement amounts, compensatory damages, and diversity and sensitivity training costs.
The bottom line is that whatever employment practices liability policy you get, you want to be sure your concerns about these matters are addressed—and company assets are protected.
Let’s talk business (and potential liability)
CHR offers all types of business insurance and we stand ready to review your ELP coverage and other business policies. Learn more at https://chrusa.com/business-insurance. Contact your CHR account manager or use our Contact Form to discuss your needs.