The Employment Practices Liability Insurance Covers
Employment insurance covers are used to offer protection to both employers and employees at different capacities. The employment practices liability insurance covers the employer against claims of a certain nature made by employees. The cover offers protection to employers for instance when employees claim that they have harassed them. Any upcoming payments are made by the insurance company. In cases where there are meritless claims from certain employees, the policy offers the efficient cover against such.
Businesses may try to be fair in terms of employee remuneration and working conditions with due motivation to employees. However, there are other factors such as gender and age which may lead to miscommunications and employee claims. The epl insurance covers a vast lane of such claims. This insurance cover is however less standardized as compared to other insurance covers. Most EPLI covers are bundled together with the business owners insurance policy, though they may still appear as independent policies. Some businesses by nature are prone to employee claims, and hence there is need to assess your business type before taking up an EPl cover. The businesses which dont have much employee claim risk should however have it included as a tag along package in comprehensive insurance covers to cut down on cost.
There are a variety of risks that are covered in the employment practices liability insurance. For instance, the policy covers employers from employee claims involving wrongful discharge. Claims related to emotional distress of employees due to work conditions or employer mishandling are also covered in the policy. Claims of workplace discrimination are also protected against together with harassment by employers in the work place. Some employees may base claims on privacy interruption or lack of privacy while others may launch claims on defamation and reputation degradation. Such claims are also covered in epli insurance.
The EPLI cover protects unintentional injury of employees but this is subject to investigation. It however only covers individual manager or employee-based injuries and not institutional injuries. There are also other exclusions of the cover like those of health act and occupational safety. It will not cover the employer if he/she is violating fair labor standards and other state employment laws. There are also exclusions based on violation of Employee Retirement Income Security Act (ERISA) and Consolidated Omnibus Budget Reconciliation Act.
The EPLI cover may have provisions that are different from those of a general liability cover. However, the principle applied in this type of cover is that there it does not protect the employer when he/she is violating worker employment standards.