Why Your Business Needs Employer Practices Liability Insurance


Why Your Business Needs Employer Practices Liability Insurance

What is EPLI and Does My Business Need It?

Are you wondering if your business needs Employment Practices Liability Insurance (EPLI)? The real questions to ask yourself are: Do I have employees? Will I be hiring employees? If so, then the answer is unequivocally yes! In this litigious society, you should be aware that your business is at risk from the moment you interview a prospective employee. Current, former, and potential employees have the ability to raise a claim, whether one is warranted or not. Therefore, you should secure EPLI coverage for your business.

What is EPLI?

Employment Practices Liability Insurance (EPLI) is coverage that protects businesses against potential employee lawsuits including sexual harassment, wrongful termination, discrimination, invasion of privacy, pregnancy, and more. Although you may be thinking that you have general liability insurance and workers’ compensation coverage in place, be aware that these policies typically exclude employee lawsuits and discrimination allegations. Without EPLI coverage, you leave your business exposed.

Does my business need EPLI coverage?

If you employ even one person, you are at risk for an employment-related claim. These claims tend to be expensive and distractive. Fortunately, with EPLI coverage, you can mitigate the damage from such costly lawsuits and keep your business running with minimal interruption.

How can I reduce my chances of a claim?

Even if you have all of the correct policies and procedures in place, your company is still open to liability. To help prevent an issue from arising, secure insurance and then take note of these proactive steps:

  • Conduct background checks
  • Ensure consistency in your hiring practices for every single candidate
  • Establish defined roles, responsibilities, and performance expectations for all positions
  • Outline employment policies in company handbooks
  • Enforce a zero-tolerance policy towards discrimination, harassment, and substance abuse
  • Implement an open-door policy to help employees feel comfortable reporting harassment or other infractions without fear of retaliation
  • Accurately document every violation or incident and store this information in each employee’s file

As a business owner, you always want to stay one step ahead. EPLI coverage can help your business stay protected. At CAV Insurance Agency, we work with each business to determine their individual needs and budget. Serving Wellesley, Needham, Natick, Brookline, and neighboring towns, contact us today on 781-237-4107 to get started.