It can happen at any business — an off-color joke told at the water cooler, a disgruntled terminated employee, an interviewee that didn’t get the job. From the minute you interview a potential employee, your business is at risk of being involved in an employee lawsuit. Recent estimates show that three of five companies are sued by employees — in 2012 alone, more than 99,000 discrimination claims were filed — and small or new businesses are especially vulnerable. While big corporations generally have legal departments and extensive handbooks in place, small and new companies usually aren’t prepared to handle the risks. That’s where employment practices liability insurance comes in.
Employment practices liability insurance, or EPL, protects your business — and its managers, officers, directors and employees — against claims and lawsuits brought by employees, interviewees or terminated employees. EPL usually covers claims made in areas including:
- Discrimination based on factors such as gender, disability, race or age
- Sexual harassment
- Wrongful termination
- Mental or emotional distress
- Negligent hiring, promotion or compensation practices
At Pacific Unified Insurance, we understand that you need to protect your company from both the risk of financial disaster, as well as damage to your company’s image, brand or reputation. When utilized in conjunction with personnel policies, EPL represents an important tool in your company’s defensive arsenal, helping to both mitigate the impact of employee claims and protect your bottom line.