Protect Your Business From These Common EPLI Claims

Protect Your Business From These Common EPLI Claims

Every business needs to protect itself with employment practices liability insurance or EPLI. Even with appropriate risk mitigation and anti-discrimination policies, you could still face claims. Here are two of the most common EPLI claims.

Retaliation Allegations

Employees have a right to file EPLI claims. However, some employees fear that if they file a claim that the employer may retaliate against them. If an employee claims that your company will retaliate if he or she files a claim, this could spell trouble for your business. Retaliation could include firing an employee for claiming discrimination or adverse treatment.

Failure to Hire Allegations

One of the most common EPLI claims is the failure to hire or promote based on a protected class. The ADA has a list of protected classes that you cannot discriminate against. For example, you cannot use a person’s race, gender, sexuality or religion as grounds to refuse a promotion or to fail to hire. If a person feels as though their involvement in a protected class influenced your decision, he or she may file a claim against your company.

Even if you take measures to prevent discrimination, you cannot always prevent the allegations. No matter if the allegations are true or false, your company still has to pay the legal costs and may have to pay the settlement. EPLI insurance protects your business against these allegations.