If you are a business owner, EPLI coverage is essential to protect your company against liability. A comprehensive EPLI policy will pay for damages resulting from settlements, as well as legal fees and other expenses.
What Types of Liability Will EPLI Cover?
EPLI insurance covers a number of circumstances, including:
- Allegations of discrimination based on race, gender or age
- Harassment, including sexual situations and intimidation
- Wrongful termination or failure to promote
- Contract breaches
- FMLA violations
Depending on your policy, EPLI covers not only current and former employees, but also contractors and seasonal workers.
How Can You Minimize Your Liability Risks?
In addition to an EPLI policy, you must also create a work environment that promotes best practices to minimize your risks. Examples include:
- Develop an employee handbook that explains your company's policies regarding workplace expectations. Include the consequences of unacceptable behavior.
- Perform proper background checks before hiring.
- Provide training for new employees on the company's policies. Make each person sign a statement stating they have read and understand the expectations.
- Conduct performance reviews for each employee. Typically, new employees receive a review after 90 days and then at least annually.
As a business owner, you hope you'll never need to use your EPLI policy. Going without one, however, is a risk you can't afford to take.