Employment practice liability insurance (EPLI) is a new form of insurance making waves in the corporate world today. EPLI is a type of insurance that provides adequate protection for employers against claims made by employees and former employees. The allegations covered by EPLI includes, discriminations of all types, sexual harassment, wrongful discharge, salary and allowance issues and all other employment issues.
Employer/employee relationship can get sour for so many reasons, employees could feel discriminated, harassed and even oppressed by employers. These problems could lead to lawsuits from employees. Employment practice liability insurance was set up to cover any loss that may arise as a result of these litigations. Companies are in constant battle to avoid paying enormous amount of money for settlement of disgruntled employees. Without proper preparation, such employment lawsuits can run an organization down the drain.
Why choose an EPLI?
As mentioned before, employment lawsuits in on the rise. As a matter of fact, almost every company faces employment lawsuit at one point or the other in their corporate existence. For this reason, every company should opt for EPLI as part of their insurance package. EPLI covers your back as an employer; it reduces the risk of mega losses from employment lawsuits to the barest minimum. Employers are not perfect individuals; there are always old habits that can raise its ugly head within the organization. EPLI will also protect employers in the event that they cause any grievance to employees due to their actions. The fact remains that employment lawsuits can come in any form, whether it is substantial or groundless it will definitely cost money and time to clear your company name or pay settlements. Choosing employment practice liability insurance will provide a way to carry this expense when they arise.
When to get an EPLI
There is no set time to get employment practice liability insurance, once your company has set out to hire, Employment Practices Liability Insurance should be gotten. Employers cannot wait until they face their first employment lawsuit before they choose to get EPLI, it could already be too late. The bottom line is that if your company has no employment practice liability insurance yet, it is running at a big risk.
EPLI is relatively a new innovation in the insurance world; many insurance companies do not have the technical know-how to offer EPLI yet. Before choosing an insurance company for your EPLI, you must demand track records of their past achievements. You must also check their reliability in total so you do not shoot yourself in the foot. Employers need not be geniuses to recognize the benefits of EPLI, companies that desire to stay on top should have employment practice liability insurance. contact us