How To Minimize Employment Practices Liability Exposure

Employment Practices Liability Insurance (EPLI) provides coverage to a business for defense costs and damages related to various employment-related claims such as allegations of wrongful termination, discrimination, workplace harassment, and retaliation.

What is Employment Practices Liability Insurance (EPLI)?‍

However, most insurance companies will not even consider insuring a business unless it already has some basic employment practices (policies and procedures) in place.

To prevent employee lawsuits, educate your managers and employees and develop official policies and procedures so that you minimize the likelihood of EPLI claims in the first place.

Below we’ve outlined just some of the important policies and practices you should have in place to mitigate your employment practices liability exposures.

• Develop an employee handbook detailing your company's workplace policies and procedures, including attendance, discipline, and complaints. The employee handbook should also contain an employment at-will statement and an equal employment opportunity statement.
• Create a job description for each position that clearly defines performance expectations.
• Conduct periodic performance reviews of employees and diligently update the employee file.
• Develop a screening and hiring program to weed out unsuitable candidates prior to contacting them and interviewing in person.
• Conduct background checks on all possible candidates.
• Institute a zero-tolerance policy regarding discrimination, substance abuse and any form of harassment. Make sure you have an "open door" policy in which employees can report incidents without fear of retaliation.
• Create an effective record-keeping system to document employee issues as they arise, and what actions were taken to resolve those issues.
• Review potential exposures with your insurance agent and purchase adequate employment practices liability insurance.

We provide Employment Practices Liability Insurance for all types of firms in Newton, Needham, Wellesley, and all of Massachusetts. Contact Kovalev Insurance for employment practices liability insurance and request a complimentary consultation to ensure your business is properly protected.