Employment Practices Liability Insurance (EPLI)
What You Need to Know About
Employment Practices Liability Insurance (EPLI)
Since 1956, RJ Ahmann Company has been a premier provider of employment practices liability insurance nationwide.
Wondering if your business should be protected by employment practices liability insurance (EPLI)?
If you have one or more employees, you need to learn more about EPLI. Any time you interview, hire or dismiss someone, you are taking a risk. All employers, no matter the size of the company, can be subject to legal action from past, current and even prospective employees. When it comes to employment practices, the causes of action are broad, defense can be difficult and settlements are significant. It's smart to secure protection now, before you're hit with a claim.
Why is employment practices liability insurance important?
Studies show that three out of five employers are sued by an employee. Why take the risk? If someone perceives discrimination or harassment, from you or other employees, you can be held liable. EPL coverage protects you from such claims. New companies are especially at risk for liability claims because they often have not taken the time to create employee handbooks with clearly documented policies and procedures.
Of all U.S. civil litigation, employment issues make up 30 percent of the cases. And, it has been reported that charges filed through the Equal Employment Opportunity Commission increase every year.
How does EPL insurance work?
Basic EPLI covers your business for employment practices claims such as discrimination, harassment, failure to promote and wrongful dismissal. In recent years, the frequency of employment practices claims has spiked. Here are a few examples...
- An older teacher's job is cut and later a younger teacher is hired in another specialty. The older teacher sues alleging that she should have been offered the new position.
- A man comes out the closet just before becoming eligible for "partner" status at his firm. When he is not offered the expected promotion, he sues for sexual preference discrimination.
- A salesperson assertively pursues a client's receptionist. She sues your company for sexual harassment.
- A copy repair person visits your company and makes a racially-charged comment to an employee belonging to a minority group. The employee sues for harassment even though it wasn't your employee who made the comment.
In these scenarios, the first two examples would be covered by basic employment practices insurance. The last two examples would not be covered unless you purchased a third party policy extension – something that RJ Ahmann often recommends.
A smart solution
If you need employment practices liability insurance, or if you just want to learn more, RJ Ahmann can help. Because of the declining economy and aging workforce, numerous wrongful discrimination claims for termination have resulted. Our Minneapolis agency has helped cover and successfully defend clients in countless cases. We will help you obtain comprehensive, cost-effective insurance coverage – tailored for your business's unique needs.
To ensure that you get the strongest insurance protection at the best rates, we...
- Provide written material to help you structure policies and create a corporate culture of no tolerance. Many companies don't have such a written policy in their employee manuals.
- Understand the potential issues and their insurance solutions, including the changing approaches in the marketplace.
- Offer unparalleled expertise and stability giving you the peace of mind that RJ Ahmann will be there when you need us most.
- Work with 32 contracted carriers to provide you with a range of choices unavailable at most other agencies.
- Have the experience to be a strong advocate for you during a claim.
A case study
A small but rapidly growing medical device manufacturer recently received approval for entering into clinical trials. In additional to needing employment practices liability insurance, the company also has a need for clinical trial insurance for liability arising out of the medical device testing process. This is but one example of the breadth and depth of expertise and product offerings that RJ Ahmann provides.
Ready to Learn More? RJ Ahmann is Ready to Help with Solutions for Employment Practices Liability Insurance!