All companies need to take active measures to protect themselves against claims relating to employment practices liability. A comprehensive commercial insurance package in addition to proper guidance about human resources policies and practices can help safeguard your company against costly liability scenarios.
Understanding Liability Exposure
EPLI coverage claims encompass a broad range of issues. While some employees bring claims against their employers despite the absence of any actual wrongdoing, many claims have merit and are based on legitimate grievances. In cases relating to a hostile work environment, an employee can pursue damages based on a company’s failure to act when he or she is harassed or bullied by coworkers. Discrimination claims are based on mistreatment because an employee belongs to a constitutionally protected class such as a particular race or religion.
The Financial Impact of Claims
Without any type of insurance coverage, litigating an employment practices liability claim can be very costly for a company. If a claimant prevails, damages could exceed a company’s ability to pay.
Employers can reduce the risk of employment practices liability by having company-wide training initiatives and written policies related to discrimination, harassment, and employee grievances. In addition, they should work with an insurer who is experienced serving clients in their industry to secure adequate EPLI coverage as a part of their commercial insurance protection.