EPL Insurance: Are You Covered?

You are already aware of the necessary insurances you need to carry to run your business, but if you haven’t heard of EPLI or Employment Practices Liability Insurance you may wish to learn about it. This insurance can protect you from litigation against your company in relation to employment issues from potential, current, or former employees. Here is some information on how it works.

  • Covers all employees. A EPLI policy should include all possible employees: part time, full time, and even applicants. This means that even if a potential candidate brings a suit against your company for what they claim to be unfair hiring practices, the insurance will cover that action.
  • Civil Proceedings and Arbitration. The most basic EPLI policies should include defense in civil cases as well as dispute resolution that can occur out of the courtroom.
  • Ability to choose your own attorney. Not all EPLIs allow you to choose your own attorney. Think of it like Worker’s Compensation Insurance. In order for your employee to receive treatment they need to see a doctor approved by your insurance company. To get the best representation in discrimination cases chose an EPLI that allows you to decide which lawyer will represent you.
  • “Duty to Defend” and “Hammer Clauses.” Depending on your insurance provider they may require that they provide defense for a pending case whether or not the deductible has been met. A Hammer clause means that the insurance company can recommend and pay a settlement even if the employer disagrees with that course of action.
  • Shop insurance companies. Whether your business is small, medium, or large one of many insurance companies can offer you policies that will ensure your business continues to operate smoothly even when an unforeseen situation comes up. No company expects to be sued by an applicant, or a present or former employee. If you’re prepared when it does happen you can avoid unnecessary issues. Well-known companies such as State Farm and AIG offer EPLI policies.

Looking for a staffing firm that understands all aspect of employment relations and Human Resources solutions? Call CornerStone staffing today to speak to a representative about your business needs.


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