Protect Your Business From Employee ClaimsRunning a business can be risky and often times may lead into allegations from an employee, a potential employee, or former employee regarding harassment, wrongful termination, and discrimination. This sort of topic has been on the forefront of all media and has raised awareness within businesses, employees, and human resources. Something as simple as a job interview with an applicant can turn sour if that applicant feels the interviewer is discriminatory during the interview process. No business wants or expects these types of situations to arise, but if your business is faced with a lawsuit, do you have the coverage in place to protect your business from employee claims?

Employment Practices Liability Coverage (EPL) 

Assume that you fire an older lady because she continuously fails to show up for work and performs below benchmarks. A month later, you receive a legal notice from her attorney alleging “wrongful termination” and “discrimination” and now you are faced with a lawsuit. If you don’t have EPL coverage added to your business insurance policy, you may be faced not only with a lawsuit, but financial disaster. Charges from employees (past and present) can be significant, even if the charges are dismissed, so making sure you have ZERO gaps in your business coverage is a must.

Typical EPL insurance policies provide business protection against lawsuits from employees (past, present, or potential) alleging discrimination, sexual harassment and wrongful termination. Talk with your local N.C. independent insurance agent to see if you currently have this EPL endorsement attached to your N.C. business insurance policy.

Reduce Your Risks

Having the right type of business protection in place is crucial, but there are also ways to reduce your risks so that you may not have to be faced with a bad situation or at least reduce the number of incidents. Below are some of the ways you can reduce your risk exposure against harassment and discrimination claims, to name a few.

  • Execute written policies clearly outlining situations such as the hiring, firing, and disciplining of employees, as well as circumstances surrounding discrimination and sexual harassment.
  • Administer to all employees, a handbook that specifically outlines these policies and procedures and routinely train your employees on all of the procedures/policies.
  • Discuss your potential risk exposures with your local independent N.C. insurance agent to ensure you have the right type/amount of EPL insurance protection.
  • Perform yearly reviews on your employees and make clear/concise notes on all work performance, attendance, and complaints.
  • Ensure that all employees, when hired, fill out an application that outlines an “equal employment opportunity” statement along with an “at-will” statement which lets the employee know that their employment can be terminated at any time for any reason.

Understand the Many Benefits of EPL 

Our expert staff at Paramount Insurance Agency wants you to understand the many benefits of EPL insurance so that you will be aware and appreciate the importance of safeguarding yourself and your business. We are here to assist you with these types of sensitive issues that may arise in your workplace and can answer any of your questions regarding EPL insurance. Give us a call TODAY at 866-869-3335.

 

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