Question 7: What about obtaining Employment Practices Liability (EPL) Insurance?

EPL insurance is an important part of any Employee Relations Program. However, this insurance comes into play only if you have been sued. It does not establish the policies and monitoring which minimizes the potential for litigation in the first place.

Many Companies offering EPL insurance provide some risk assessment including proposed policies and long distance training. The problem in relying upon your insurance carrier as a substitute for an aggressive Employee Relations program is twofold: (1) the insurance program often uses a standardized “template” rather than design the policy to integrate with your overall management strategy; and (2) the insurance program does not establish an ongoing monitoring program which allows you to identify and correct problems at the earliest possible date.