In today’s business environment, Employment Practices Liability Insurance (EPLI) has become essential for companies of all sizes. In a recent expert panel moderated by our President, Jimi Honochick, industry leaders discussed the growing importance of EPLI coverage and how it fits into a comprehensive commercial insurance strategy. Panelists included Jacob Sitman, David Steckel, and Jackie Plunkett, PHR, SHRM-CP (isolved), and the event took place at Notch.
Why EPLI Coverage is a Must for Today’s Employers
EPLI insurance protects businesses from costly claims related to wrongful termination, discrimination, harassment, retaliation, and other employment-related issues. As Jimi and the panel emphasized, the frequency of workplace disputes is on the rise due to shifting labor laws and evolving employee expectations.
With the rise of remote and hybrid work models, businesses face new legal and compliance risks that demand a stronger employment liability insurance framework. Panelists shared real-world examples of companies suffering substantial financial losses from employee claims—losses that could have been mitigated with robust EPLI policies.
EPLI as a Critical Part of Commercial Insurance
For business owners and HR professionals, understanding how EPLI fits within your broader commercial insurance coverage is key. A solid EPLI policy can help cover legal defense costs, settlements, and judgments, shielding your business from unexpected financial strain.
Incorporating EPLI into your business insurance plan not only provides legal protection but also demonstrates a proactive commitment to compliance and employee well-being.
Reducing Risk with Proactive HR Practices
The panel also discussed risk management strategies that go hand-in-hand with EPLI:
- Implementing clear HR policies and procedures
- Conducting regular employee training on workplace conduct
- Maintaining proper documentation of employee performance and disciplinary actions
- Conducting legal reviews of employment practices to reduce liability exposure
By building a strong internal framework and aligning it with the right employment practices insurance policy, companies can drastically reduce their risk of employee lawsuits.
Creating a Positive Workplace Culture
A key takeaway from the discussion was that a healthy workplace culture is the first line of defense against employment claims. Open communication, diversity and inclusion initiatives, and strong anti-harassment policies are all vital components in preventing disputes before they start.
Final Thoughts: Choosing the Right EPLI Policy
As employment-related claims continue to increase, businesses cannot afford to overlook the importance of EPLI. Whether you’re a small business owner or manage HR at a larger company, reviewing your current commercial liability insurance and ensuring it includes comprehensive EPLI protection is critical.
If you’re unsure how to choose the right employment practices liability insurance policy, consult a trusted insurance advisor who understands your industry, workforce, and risk profile
