Limiting EPLI Risks

Employment practices liability insurance, also known as EPLI, will provide protection for employers for any claims that are made by employees alleging discrimination, harassment, wrongful termination, and other employment related issues. Small businesses tend to be more vulnerable to employment claims because they do not have the strong legal department or company handbook that large corporations are able to afford. To help limit your employment practice liability risk, keep these tips in mind.

• Review any loss exposures of your business with your independent insurance agent, and make sure to invest in enough EPLI to provide coverage.
• Make a handbook that details the employment procedures and policies of your company for terminating or disciplining employees. Make sure everyone on the team reads the handbook and signs a statement that they have read and understood it.
• Create a specific job description for each position at your company that clearly defines the expectation of performance and skills.
• Hold periodic performance review of all employees and carefully take note of any findings in the employee’s file.
• Develop a process to screen and hire new employees to help weed out any unsuitable candidates before bringing them in to interview.
• Conduct background checks on every possible candidate before making a decision on whom to hire to avoid any employees that may have a questionable background.
• Put a zero tolerance policy in place for substance abuses, discrimination, and any form of harassment. Make sure to have an “open door” policy at your company to allow any employee to report an infraction without fearing any type of retribution.

For all of your business insurance needs and to ensure that you have the right amount of coverage, contact the independent insurance professionals at Agape Brokers Insurance Agency in Hemet, California.

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