EPLI Insurance

Workplace Relationships Have Never Been as Litigious as They Are Today. 

The number of lawsuits filed by employees against their employers is rising. No company is immune to such lawsuits. If you have employees, you run the risk of a lawsuit. 

Can your business afford to defend itself against alleged wrongful employment accusations? Most can’t. 

Employment Practices Liability Insurance (EPLI) provides protection against many kinds of employee lawsuits such as:

  • Sexual harassment
  • Discrimination
  • Wrongful termination
  • Breach of employment contract
  • Negligent evaluation
  • Failure to employ or promote
  • Wrongful discipline
  • Wrongful infliction of emotional distress
  • Mismanagement of employee benefit plans

The Cost of EPLI Coverage

The most correlated factor to EPLI risk is the organizational size. Naturally, the more employees a company has, the more likely it is that one of the employees will find some discriminatory basis for a lawsuit. 

Most underwriters are looking closely at your organization’s investment in HR talent, policies, and procedures. If your company has not put these items in place, it’s possible that you will pay more for your EPLI coverage than one that does. 

So, if you’re still wondering if your business needs to buy EPLI or not, the answer is that you most likely do. Does your business perform any of the following actions?

  • Hire or fire employees
  • Demote or promote employees
  • Offer raises to employees
  • Communicate to or about employees
  • Manage benefits for employees

If so, then you need EPLI coverage. 

The most correlated factor to EPLI risk is the organizational size.

Why Do You Need EPLI?

There are many reasons why the number of harassment claims seems to be constantly increasing; it’s certainly not a coincidence and correlates with the current political and social climate we are seeing.

Social media has also provided a voice to the harassed and has made it easier for those who have been harassed at work to speak out about it. The #MeToo movement is a good example of this. 

Employee lawsuits are on the rise, and even if you’re in the right, the legal costs can still be staggering. That’s why you need to protect your business no matter what. 

Tips for Preventing Employee Lawsuits

While there is no way to completely prevent employee lawsuits, there are things that you can do as a business owner to minimize the risk and decrease the chances of an employee claim. 

One mistake businesses make is having a handbook, and not enforcing it. If you are going to have a comprehensive handbook describing proper behavior at the workplace it's crucial that you never deviate from its policies. Additionally: 
  • Be sure to educate your employees and provide adequate training.
  • Enforce zero-tolerance related to harassment and discrimination
  • Take all employment discrimination complaints seriously 
  • Launch all investigations quickly

How The Bunker Can Help

At The Bunker, we work with some of the top EPLI insurance carriers in South Florida to make sure your business is well protected. Being a hybrid risk management and insurance firm, we can help you not only move your business from danger to a safe place but also improve your bottom line. 

Protect Your Business Against Employee-Related Lawsuits Below

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