Beckworth Beneficial Blog

Posted by: Admin

Posted on: Jul 31, 2023 at 4:38 pm

Employment Practices Liability Insurance

Creating a safe, fair and ethical work environment is a critic al part of maintaining optimal operations at your workplace. Furthermore, as an employer, you are also beholden to various laws and regulations that dictate how your employees should be treated. Failing to fulfill these requirements and foster a healthy workplace culture can have devastating ramifications for your organization’s finances and future. With these stakes in mind, your company should highly prioritize understanding and maintaining adequate employment practices liability insurance (EPLI).  

What Is EPLI? 

As its name suggests, EPLI is a type of coverage that provides financial assistance if your organization faces an employment practices liability lawsuit. These claims may arise from many allegations of work-related wrongdoing, including the following:  

• Harassment
• Discrimination
• Wrongful termination
• Retaliation
• Improper hiring practices
• Failure to promote
• Negligent evaluation
• Wrongful discipline
• Breach of employment contract
• Invasion of privacy 

Who Needs EPLI? 

Any business with employees should consider purchasing EPLI. Even if your organization makes fair and ethical treatment of its employees a top priority, a single misunderstanding or misinterpretation could lead to a costly lawsuit that requires significant financial resources.  

Even if the accusations of a former, current or prospective employee are untrue, having coverage for your legal expenses (e.g., representation, court costs and settlements) may prove to be an invaluable investment. Conversely, lacking sufficient EPLI could prevent you from being able to set the record straight, avoid financial losses and rehabilitate your reputation. 

Your organization’s specific EPLI coverage needs may vary significantly depending on its unique circumstances, such as the following:  

• Industry - Businesses in certain sectors, such as restaurants, construction firms, manufacturing companies and retailers, may be more likely to face employment practices liability claims.
• Turnover rate - If your organization has a high employee turnover rate it may also be of particular importance to ensure adequate EPLI, as dismissal and hiring processes can commonly lead to lawsuits.
• Financial state - EPLI needs may vary based on your organization’s financial ability to potentially absorb the costs of a lawsuit out of pocket. 

We’re Here to Help 

With extensive specialized experience helping employers establish and maintain optimal work environments, the knowledgeable professionals at Beckworth Beneficial are well-equipped to ensure your organization has the right EPLI. Our agents will work with you to assess your coverage needs, explore the best available options and compose appropriate policies. Visit our website or call 559-389-5837 to get started today.