Your employees matter to your reputation. It is up to you to make a good impression on them from the moment you meet them at their first interview. The better care you take of them, the more highly they will likely think of you. And, if you were to make mistakes, they could have the right to take action against you. You don’t want to think about actions of harassment or discrimination in your business, but the fact is these allegations might arise at any moment. If they do, will your insurance help you?
If you have a type of coverage called employment practices liability insurance (EPLI), you’ll often have help in case these circumstances arise. The thing about EPLI insurance is it can help you even when an employee no longer works for your business.
EPLI Coverage in Brief
You likely have workers’ compensation insurance for times when your employees get hurt or sick on the job. Coverage might help you pay their medical bills, supplementary income and associated costs. However, what about non-physical claims employees make against you? That’s where EPLI coverage might help out.
EPLI insurance can help in case employees allege misconduct like:
The interesting thing about these policies is they usually don’t just apply to your current employees who make allegations. They might also apply to prospective and former employees. That’s because you might commit an offense even during any interaction with others.
Coverage for Prospective Hires
When does asking probing interview questions go too far? Let’s say that you ask a candidate if they plan to have a baby, and then decide not to hire them. You cannot ask questions like this, because of the irrelevance of pregnancy status to most people’s ability to work. Therefore, the prospective hire might sue you for discrimination. An EPLI policy might help you.
Coverage for Current Employees
An employee might allege that you or another employee sexually harassed them. Even if the allegations are unfounded or untrue, the resulting litigation might cost you both money and reputation. EPLI coverage might help you settle the damage costs.
Coverage for Former Employees
It is hard to see loyal employees leave, much worse to have to lay people off. In most cases, you have to approach termination in a fair manner. In other words, you cannot just fire an employee because they were called for jury duty. Jury duty is a legally protected civic requirement. Therefore, employers cannot retaliate against employees by firing them. Should an employee allege you did so, EPLI insurance might be able to help them.
EPLI coverage is good news for your employees in a multitude of cases. Don’t hesitate to keep coverage on file.