If you have an employee who is unhappy with your company’s conduct, you may have an employment practices complaint brewing. Employees can file complaints and lawsuits alleging financial damages, pain and suffering, and other problems resulting from illegal or discriminatory conduct by coworkers, management or the company in general.
Even if ultimately found to be groundless, a single claim of discrimination, wrongful termination, retaliation, or other employment-related issue could cost tens of thousands of dollars in legal fees. Such costs can be covered by employment practices liability insurance (EPLI). This coverage is not normally included with other common types of business insurance, so your business will most likely need to obtain it separately.
Employment Practices Liability Insurance policies include a deductible and often exclude costs of claims resulting from willful or intentional misconduct. With the onslaught of lawsuits over sexual discrimination following the #MeToo movement, terms of employment practices liability coverage were tightened, and prices rose. Having an excellent record of employee relations and rigorous protocols for handling complaints can help you secure the best coverage at the best price.
