In 2018 alone, 76,418 workers filed charges through the Equal Employment Opportunity Commission (EEOC) for workplace discrimination.
This is less than the previous year, but still a staggering number. Workplace discrimination can mean several things—age, sex, race, religion, retaliation, disability.
Many large-scale corporations have employment practices liability insurance to cover them in case a suit were filed. However, small-scale businesses are at an additional risk, as many don’t consider EPLI in the beginning stages. An argument can be made that that’s the most critical time for a small business to consider an EPLI policy.
Any company can face a workplace discrimination suit for any number of reasons. Retailers, restaurant owners, IT companies, and more, can be subject to this type of litigation.
As the owner or operator of a business, your money is best spent in a preventative measure. Here’s what EPLI is and why you need it.
What Is Employment Practices Liability Insurance (EPLI)?
We mentioned several suits filed through the EEOC in 2018.
Let’s compare EPLI to car insurance for a moment.
If you were to get into an accident, car insurance would help you cover any financial risks or liabilities. You would have insurance before the accident to protect you.
EPLI is preventative insurance for employers to protect them in case an incident occurs and a worker files a suit against them.
Suits can be filed for several reasons, such as:
- Wrongful termination
- Race
- Sex
- National Origin
- Religion
- Sexual Harassment
- Disability
- Age
- Color
- Retaliation – All Statutes
- Retaliation – Title VII Only
- Equal Pay Act
- GINA (Genetic Information Nondiscrimination Act)
EPLI policies would protect the insured if a worker decided to file a suit for any of the above reasons. It would help pay for legal defense, financial obligations, and more. When drafting an EPLI with your insurance provider, you would discuss what coverages are most needed for your business.
The cost of EPLI varies based on the size of a company, how many employees it’s covering, and whether you’ve had suits filed against your business in the past. Discuss costs and considerations with your insurance provider for a more in-depth idea at what EPLI will cost you—and remember that protection is priceless.
How to Protect Your Business from Lawsuits
EPLI is an excellent way to protect your business from potential lawsuits.
However, there are several other measures you can take to outline your policies clearly. The more transparent your business is, the less likely you’ll be to get sued.
Here are some tactics you can begin implementing today:
- Thoroughly train your staff to know the various employment laws
- Make employee training handbooks that clearly define goals and expectations, so you can’t get fired for wrongful termination
- Include ‘at-will’ in your application process
- Conduct background checks on all potential employees
- Make a zero-tolerance policy in your business and strive to hold it up
- Report any misconduct, conversations, employee reviews, and the like, in employee files for documentation
Ready to Purchase EPL Insurance?
You don’t want to consider auto insurance after a car accident. Similarly, your business needs employment practices liability insurance now, before anything detrimental happens.
We can help your business be more secure than ever.
Contact us to discuss a policy that works for your company. Request a quote and get started today.
