Employment-related lawsuits are a growing concern for employers of all sizes, including home-based businesses. Prairie Villa Insurance can help you manage all your business risks, including employment practices liabilities.
What is Employment Practices Liability Insurance?
Employment practices liability (EPL) insurance is a policy used to cover your risks due to some of the most common employment-related lawsuits, including the following:
- Wrongful termination: The discharge of an employee for invalid reasons.
- Discrimination: The denial of equal treatment to employees who are members of a protected class.
- Sexual harassment: Subjecting an employee to unwelcome sexual advances, obscene or offensive remarks, or the failure to stop such behaviour.
EPL works to provide the necessary resources to defend your company against a lawsuit or to pay for a claim. To best understand how to cover your EPL risks, it’s important to know the potential sources:
| Recruitment practices | Annual conduct reviews |
| Employment applications | Enforcing performance policies |
| Employment offers | Termination |
| Employee orientation process | Improper documentation of the items listed above |
Additional Information
Evidence of desirable employment practices and policies may be required for an EPL policy, and will certainly help defend against a suit (even for a small, home-based business with only a few employees). The underwriter may require a copy of the following policies to show that you are taking steps to reduce your risks:
| Sexual harassment | Disability and accommodations |
| Equal opportunity | Employee discipline |
| Termination | Performance evaluations |
| Internet usage/employee privacy | Leaves of Absence |
| Internal job postings | Hiring and interviewing |
| Discrimination | Resolution/arbitration |
Avoid a Lawsuit
As costs for litigation and damage awards climb, experts predict that employment liability will only become more complex. As a result, it is critical for business owners to understand their exposures and options for managing risks.
