Benefits of EPLI for Schools & Municipalities
Public entities and school leaders make decisions each day on a range of issues including things like hiring, firing, compensation, promotions and the work environment. Every one of these decisions impacts your employees and, depending on the outcome, could result in a claim related to wrongful employment practices.
These claims can disrupt business, hurt morale, damage your reputation and lead to serious financial damages. Thankfully, employment practices liability (EPL) insurance can provide organizations with protection from the above risks. Specifically, EPL insurance provides the following to your municipality or school:
- Coverage for alleged acts – EPL insurance not only protects organizations from actual wrongful acts but alleged acts as well. Specifically, EPL coverage can safeguard an organization from claims related to discrimination, harassment, retaliation and wrongful termination.
- Timely responses to lawsuits – Employees suing their employers is common, and organizations will want to be prepared. This is especially important when you consider that there is no cap on how much a jury can award and that settlements in employment-related cases can easily reach six figures.
- Access to legal help – Strong EPL policies provide the insured with access to legal resources. This can prove invaluable if you need advice quickly.
- Risk management strategies – While employment-related lawsuits can arise at any time, an organization that takes the time to implement basic risk controls are better equipped to avoid claims altogether. Many insurance companies provide access to risk management training and human resources consulting. These services can greatly reduce the likelihood that your municipality or school is sued by an employee.
- Additional protection for your leaders – While Directors and Officers (D&O) insurance can defend against employment-related lawsuits, dedicated EPL insurance is necessary for many organizations. Having a policy that provides separate coverage for lawsuits connected to wrongful terminations, discrimination, invasion of privacy and similar employment claims ensure that the limits on your D&O policy aren’t exhausted unnecessarily.
Claims for wrongful employment practices are on the rise and often lead to business interruptions and costly claims. To truly protect your organization, it’s critical to seek EPL insurance.
For more information on EPLI for your school or municipality, contact a member of the ‘A’ Team.
- Fiduciary and EPL Q&A Video
- Thumb Risks: Social Media’s Impact on Employment Practices Liability
- Understanding Employment Practices Liability Insurance
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