Business owners of all sizes are vulnerable to claims /suits from their employees. Small Businesses are often the most vulnerable. Why? Because typically small businesses lack a legal department or an employee handbook detailing policies and procedures that guide hiring, disciplining, or termination. Employee Practices Liability Insurance (EPLI) provides coverage to employers against claims made by employees alleging discrimination, wrongful termination, harassment, and other issues such as failure to promote.

You’re at risk from the moment you interview a prospective employee. If you chose not to hire them, the individual could allege some sort of discrimination (based on sex, race, age, or disability for example). Or maybe you did hire the individual, and now you need to fire them due to poor attendance. That discharge employee could claim wrongful termination.

If you do not currently have an EPLI policy in place, contact Westrock Insurance to discuss this further with us. It may be as simple as adding the coverage to your existing policy. The cost of EPLI insurance is based on a variety of factors such as the number of people you employ, prior suits, percentage of turnover, and if you have existing practices in place. EPLI is relatively inexpensive and will keep you and your business protected.

Some ways to lower your risk of allegations/law suits

• Discuss your Liability Coverage with your Agent
• Develop an Employee Handbook and make sure all employs have a copy, and sign off on it
• Make sure to document everything. If there is an issue with an employee, have a simple document stating the cause and issue etc. Then a brief summary of the outcome and how it was handled.