Employee Lawsuits on the Rise: Is Your EPLI Policy Keeping Up?
Summer brings longer days, more customers, and in many industries, a big wave of seasonal hiring. But with more employees on staff, there's also a greater potential for employment-related disputes.
Whether you're hiring temporary workers for a construction project, bringing on seasonal staff for a resort or charter business, or ramping up a retail team, it's essential to consider how well your Employment Practices Liability Insurance (EPLI) is protecting your business.
What Is EPLI?
EPLI provides coverage against claims made by employees (past, present, or prospective) alleging that their legal rights have been violated. This policy can help cover legal costs and settlements, shielding your business from the financial burden of an employment-related lawsuit.
What Does EPLI Cover?
Some of the most common scenarios EPLI can cover include:
Wrongful Termination: Claims that an employee was let go for illegal reasons.
Discrimination: Allegations of unfair treatment based on race, gender, age, disability, religion, or other protected classes.
Sexual Harassment: Claims involving inappropriate conduct or hostile work environments.
Wage & Hour Disputes: Allegations of unpaid overtime, misclassification of employees, or wage discrepancies.
Retaliation: Claims that an employee was punished for filing a complaint or participating in a protected activity.
Why It Matters More During Seasonal Hiring
Bringing on short-term or part-time employees adds complexity to your workforce. Seasonal hires may not be as familiar with your company policies, and managers may be under pressure to train quickly and perform. That combination can lead to miscommunication, inconsistent practices, and, unfortunately, claims.
Even if you're doing everything right, defending a claim can be costly. EPLI helps protect your bottom line.
Is Your Coverage Keeping Up?
If your workforce is growing this summer, even temporarily, it’s a good time to review your EPLI coverage. Here are a few questions to consider:
Have you recently hired seasonal, temporary, or contract employees?
Has your employee handbook been updated and consistently shared with all staff?
Do you have clear training and documentation protocols in place?
Is your current EPLI policy aligned with the size and nature of your workforce today?
Protect Your Business
Employee lawsuits can happen to companies of any size. An up-to-date EPLI policy can help ensure that one claim doesn’t derail your operations or your finances.
Want to review your current policy or talk about adding coverage? We’re here to help. Let’s make sure you’re covered for whatever this season brings.
Questions about your summer coverage?
We’re here to help. Contact us today for a policy check-in.