Employment-related lawsuits are a growing concern for employers of all sizes, including home-based businesses. Heffernan Insurance Brokers can help you manage all your business risks, including employment practices.

What is Employment Practices Liability Insurance?
Employment practices liability (EPL) insurance is a policy used to cover your risks due to some of the most common employment-related lawsuits, including the following:

• Wrongful termination: The discharge of an employee for invalid reasons.
• Discrimination: The denial of equal treatment to employees who are members of a protected class.
• Sexual harassment: Subjecting an employee to unwelcome sexual advances, obscene or offensive remarks, or the failure to stop such behavior.

EPL works to provide the necessary resources to defend your company against a lawsuit or to pay for a claim. To best understand how to cover your EPL risks, it’s important to know the potential sources:

• Recruitment practices
• Annual conduct reviews
• Employment applications
• Enforcing performance policies
• Employment offers
• Termination
• Employee orientation process
• Improper documentation of the items listed above

Additional Information
Evidence of desirable employment practices and policies may be required for an EPL policy, and will certainly help defend against a suit (even for a small, homebased business with only a few employees). The underwriter may require a copy of the following policies to show that you are taking steps to reduce your risks:

• Sexual harassment
• Disability and accommodations
• Equal opportunity
• Employee discipline
• Termination
• Performance evaluations
• Internet usage/employee privacy
• Leaves of Absence
• Internal job postings
• Hiring and interviewing
• Discrimination
• Resolution/arbitration

Avoid a Lawsuit

As costs for litigation and damage awards climb, experts predict that employment liability will only become more complex. As a result, it is critical for business owners to understand their exposures and options for managing risks.