Analyzing Employment Practices Liability Insurance

Employment-related claims and lawsuits are a practical reality in today’s business environment. As with any other risk, this risk must be managed. The first step is to institute formal policies and procedures that address human resource issues before they rise into full-fledged claims and lawsuits. However, even with the best measures in place, no company is immune from a lawsuit by a disgruntled employee. Employee claims and lawsuits are on the rise. Insurance against this risk can be an invaluable tool for an employer. Virtually every business has an extensive portfolio of insurance products, but they do not all cover employment claims. In the past few years, more and more businesses have purchased employment practices liability insurance (EPLI) coverage. This article outlines how risk managers and human resources and information on how to select a system that best meets the needs of any given organization.