As a business owner, you understand the importance of having adequate insurance coverage to protect your employees and your property when an accident or weather event occurs. As vital as this coverage is, you must also protect your investment against unwanted claims made by employees. Employment Practices Liability Insurance, known as EPLI, covers legal fees and settlements in many circumstances, including claims of discrimination, harassment and wrongful termination.
Examples of Employee Claims
EPLI claims cover a variety of issues that take place in the workplace. Let’s look at a few examples.
- Illegal background check – During a background check for a potential employee, the HR department finds something unfavorable in the person’s past and declines to hire them. If the candidate did not give written permission beforehand, the background check is illegal and the person can sue.
- Harassment claim – Any kind of workplace harassment is not permitted. Sexual harassment is the most common, but other types of unwanted verbal and physical gestures are not acceptable either.
- Retaliation incident – If an employee speaks out against unpermitted behaviors at work and is consequently demoted or fired, they can file a claim.
- Wrongful termination claim – An employee can sue if they feel that they have been wrongfully fired.
While you hope you never have to use your EPLI policy, going without one could be devastating to your business.