As the insurance market continues to harden, there’s a tendency for companies to review the necessity of each coverage in their insurance portfolio. Some have asked if they need employment practices liability (EPL) coverage. The answer is a resounding yes!

EPL claims are on the rise, with further growth expected. In fact, EPL claims now make up 60% of all civil litigation in federal courts. Most troubling is that the scope of litigation continues to expand.

One of the most recent causes of actions has involved “whistleblowers,” employees who have personal knowledge of wrongdoing within their companies. In the past, fear of employer retaliation prevented many of these individuals from coming forward with the information. Today however, when retaliation occurs, these employees usually file a claim for retaliatory discharge, wrongful termination, and a violation of their first amendment rights of free speech.

So it’s important to maintain appropriate EPL coverage for these types of claims. Although the coverage itself is essential, another aspect involves the loss prevention services that most carriers supply. Frequently, the insurer will offer a manual with guidelines on how to reduce this exposure. Many also supplement the manual with a toll-free hotline to help assist policyholders with loss prevention.

Given the increased activity in this area, we believe that EPL should be a part of your insurance protection plan.

InsurePro specializes in Employment Practices Liability (EPL) insurance. Please click on apply now to get a quote.