On any given day, there are dozens of employment liability risks business owners face.

Employing people is a risky business, with liabilities that employers never considered when they started growing their business. Not only do you need to comply with state and federal laws, but it is also your responsibility to stay informed and up-to-date when changes are made.

If you think an employment practices claim will never be made against your organization, think again. Employment-related claims impact organizations of every size, in every industry and can disrupt businesses, hurt employee morale, damage reputations, and cost businesses financially — even before going to court. For this reason, having the right Employment Practices Liability Insurance (EPLI) policy can go a long way in protecting your company. Whether you are looking to improve upon the policy you currently hold or you are just beginning to learn about EPLI insurance, we can help.

What Does EPLI Insurance Cover?

At Brady Risk Management, we’ll implement an insurance program that provides
the coverage you need for claims made by employees involving:

  • Discrimination (age, sex, race, disability, etc.)
  • Wrongful Termination
  • Harassment
  • Retaliation
  • Wage & Hour
  • Deprivation of career opportunity
  • Failure to employ or promote, and other employment-related allegations

As you can see, there are a vast array of scenarios that can lead to a claim being filed against your company. The reality is that no matter how large or small your business, EPLI will provide necessary protection for your company. In fact, it is often the case that small businesses are at even greater risk than large companies because they are operating without an HR department or important policies in place. For example, a startup might be in the initial stages of putting together their company policies and during the interim, when no handbook exists, they will be an increased risk for lawsuits.

Not only are there numerous scenarios that can lead to your company being sued, but these lawsuits have also had devastating results:

  • The EEOC found that the average cost of fighting an EPLI case was $235,000
  • A rise in wage-and-hour claims by laid-off workers alleging violations of the Fair Labor Standards Act and other laws has cost establishments millions of dollars.

 

What EPLI Policy Does Your Company Need?

The right EPLI coverage for your company will depend upon a variety of factors. One of the first things that will be taken into consideration is the size of your organization. A large corporation will have distinctly different needs than a startup with five employees.

Your policy will also be contingent upon whether or not you have had previous claims made against you. The rate of your employee turnover will also play a role in your EPLI coverage, as well as what kind of policies your business has in place. Here at Brady Risk Management, we can work with you to ensure you are signing up for the right coverage for your specific needs. We can also help you create a better overall risk management plan for your company, which will help improve your EPLI costs.

Other Methods For Decreasing Your Risk

While purchasing an EPLI policy will go a long way in helping to protect your company against lawsuits from employees, there are other methods you can employ as well to decrease your risk. In fact, it is ideal to implement an overall strategy rather than just rely upon your insurance policy for protection.

A good place to being is to ensure you understand the specific employment laws of your state, as well as federal laws. If you are unclear in any way about the laws in your area, reach out for legal advice. This can go a long way in ensuring you don’t inadvertently set yourself up for a lawsuit during the hiring, employing, and firing process.

Next, you will want to review your company’s policies. If you don’t have a handbook in place, create one. Make sure you are complying with all laws when it comes to your internal policies. After you have a handbook in place and company-wide policies, be sure you take the time to share this information with your employees. This is a great time to institute a zero-tolerance policy for harassment and discrimination in the workplace.

As you go forward with the proper policies in place, make sure that you clearly document any issues as they arise. Keep a paper trail and ensure that it will never come down to your word against the word of another. The better the documentation you keep, the better chance you have of guarding against risks.

Why You Should Work With Our Team

If you are interested in learning more about EPLI policies, we invite you to reach out to our team for help. We can work with you to not only find the right EPLI insurance for your needs but to also help you create a plan that lowers your risks for lawsuits in the first place. We have years of industry experience and we will gladly work with clients across an array of industries. Whether you are operating a hotel or a construction company, we will work with you to implement a risk management strategy that best suits your specific needs.

Get started today by reaching out to our team at Brady Risk Management. Request a free quote on EPLI insurance and learn more about the services our team offers. We look forward to helping you protect yourself against costly lawsuits.

At Brady Risk Management, we’ll implement an insurance program that provides
the coverage you need for claims made by employees involving:

  • Discrimination (age, sex, race, disability, etc.)
  • Wrongful Termination
  • Harassment
  • Retaliation
  • Wage & Hour
  • Deprivation of career opportunity
  • Failure to employ or promote, and other employment-related allegations