At RGVI, we advise our clients that no matter how harmonious their relationship with employees may be, all employers — from major corporations to the corner grocery store — have exposure to certain liabilities that must be addressed. 

In addition to clearly defined procedures for hiring, terminating and evaluating performance, the need for Employment Practices Liability Insurance (EPLI) coverage should be reviewed.

• Harassment
• Wrongful Termination or Hiring Practices
• Discrimination
• Workplace Tort (retaliation, defamation, emotional distress, etc.)
• EXCLUSIONS: Wage Claims, Workers' Compensation, ERISA, ADA, Strikes & Lockouts, Contracts, WARN Act, etc.) Some of these exclusions may be able to be purchased back as an endorsement.

A growing concern for employers
EPL cases are a growing concern for employers in today's workplace. Even if a complaint is not justified or is simply retaliation by a current or former employee, defending such cases is costly in both time and money. With jury awards escalating to huge amounts, a company could be financially ruined by one serious claim. Discrimination settlements and wrongful termination decisions have threatened the bottom line of many U.S. businesses.

Employer at risk from day No. 1
The circumstances that can lead to an EPL claim are not fully controllable simply with good personnel policies and practices. Employers are realizing they are at risk from the initial interview all the through the exit interview, even if the person only worked for a very short time or was never hired.

Most EPL claims are based on the following areas:

• Wrongful termination
• Discrimination
• Sexual or workplace harassment
• Emotional distress
• Libel or slander

Employers need to be concerned about jokes told in the break room, terminating employees and inappropriate comments by an angry supervisor to an employee and job applicants not hired. A claim may be completely without merit, but the damage it can cause your company is real.