Employment Practices Liability is Vital Coverage

Axis Insurance Services

For employers, it can be difficult having to fire an employee, regardless of the reason. For employees who suddenly find themselves without a job, theres nothing worse than being laid off, fired, or forcibly removed from a job. Warranted or not, many react by filing a lawsuit. While some claims are legitimate, many others are not. Fighting these claims is often a costly process for employers. The need for an employment practices liability policy from Axis Insurance Services is clear, but you should also take steps to reduce EPLI claims before they happen.


It is important to document everything in order to provide a complete picture of each individual employees tenure at your place of business. Keep records and reports anytime an employee has violated policies or otherwise committed offenses. This should always exist as a verifiable paper trail, especially any time it has resulted, either in part or entirely, in an employees dismissal from your company.


EPLI claims filed for race discrimination and other causes


Racial discrimination is often the number one complaint levied in discrimination cases. These cases account for nearly 36 percent of such suits annually filed. Gender-based complaints have accounted for around 30 percent of cases, generally filed by women who feel they are unfairly treated versus male counterparts, and disability-related complaints make up 23 percent of claims.


Transfers or departmental moves could also lead to the filing of a claim. They are viewed as demotions by employees who feel they werent given an opportunity to prove their capabilities, or they may claim that it was the result of favoritism shown to a co-worker. Retaliation is another common claim cited in many EPLI cases where employees have felt as though employers retaliated after an accusation or complaint of discrimination or harassment was lodged against them.


Anti-discriminatory policies can reduce exposures and should be included in employee handbooks. Teach this to all employees who work for you and create a corporate culture that does not tolerate discriminatory acts. Now is the time to take necessary steps towards its prevention. In addition to these policies, you should also establish an auditing procedure to ensure the policies of the company are in keeping with the laws regarding workplace discrimination and harassment.


Businesses of all shapes and sizes need the coverage that employment practices liability coverage from Axis Insurance Services provides. Mainly because employees who are laid off during times when jobs are scarce are more inclined to sue you for wrongful termination.