Employment practices liability insurance, known in insurance terms as EPL insurance or EPLI, is coverage that protects employers against claims made by employees. Most commonly, employment practices liability deals with the laws and protections defined in several laws, including:
- Civil Rights Act of 1964, Title VII
- Americans with Disabilities Act of 1990
- Civil Rights Act of 1991
- Age Discrimination in Employment Act of 1967
- Family and Medical Leave Act
The Equal Employment Opportunity Commission (EEOC) interprets and enforces these laws. They recognize eleven types of employment practices, including (but not limited to) claims like the following:
- Wrongful termination
- Sexual harassment
- Invasion of privacy
- Breach of contract
- Emotional distress
- Wage and hour violations
Reducing Employment Practices Liability
In general, your company is at risk of an employment claim the moment you interview a prospective employee. As an example, if you interview them and choose not to hire them, the individual could allege discrimination. The following are some tips that can help employers reduce their employment practices liability risk:
- Develop a good screening process to weed out unsuitable candidates prior to calling for an interview.
- Implement a zero-tolerance policy on discrimination, harassment, and substance abuse.
- Institute an ‘open door’ policy in which any employee can report refractions without worry of retribution.
- Create a strong practice of keeping records to document issues when they arise and what actions were implemented to resolve them.
- Develop and distribute a handbook that outlines your company’s employment practices and have employees sign that they have read it.
- Conduct background checks to avoid hiring workers with a history of alcohol and/or substance abuse.
Review any loss exposure with your agent and ensure that you have purchased an adequate amount of employment practices liability insurance to protect yourself and your company.
Consult your local team of experts about employment practices liability insurance in Mississippi. Speak to us at The Nowell Agency Inc. and request a quote online. Or call us at 601.992.4444 to discuss your employment practices liability risks and the options available to you as an employer.