Employment Practices Liability Insurance: Part 1 - What is EPL Insurance
04/23/12Employment Practices Liability Insurance is an essential coverage for businesses operating today. As our society moves forward it is commonplace for employees to speak out against employers for violations of their employment rights. These suites are growing in frequency of claims files and total cost. It is important that businesses understand this coverage and implement policies to prevent EPL claims from happening. This blog is intended to inform our clients about EPL insurance, a second entry will explain ways to reduce the risk of an EPL claim against your business. Discrimination based on race, sex, and physical ability is illegal in all of Canada and as a leading broker of Canadian businesses, Globalex is committed to reducing your business’s liability when it comes to Employment Practices.
What is EPL Insurance?
EPL Insurance protects employers against claims made by existing, past and prospective employees. It covers claims involving discrimination based on sex, race, disability, etc. In Canada these claims, with some exceptions, fall under the jurisdiction of administrative tribunals. Some examples of typical Canadian EPL claims include:
- Complaints involving workplace discrimination based on race, ethnicity, sex, political beliefs, or any other prohibited grounds as explained in the Canadian Human Rights Act.
- Complaints involving sexual harassment or sexual abuse in the workplace.
- Lawsuits relating to defamation or negligent supervision in the workplace that results in sexual harassment.
- Complaints about occupational health and workplace safety.
- Complaints about hazardous chemicals or materials being used in the workplace.
- Complaints relating to wrongful termination and other employment standards.
EPL claims are commonly brought against employers and fellow employees by other employees that feel that as a result of company practices, policies, and conditions they were unable to succeed.
Employees who are allegedly wronged by their employers seek monetary or compensatory damages, reinstatement of their job, declaratory relief, apologies, punitive and exemplary damages, and changes to policies, practices, and structures of the company to reduce future EPL claims. These claims are usually settled out of court in Canada; however, when they are taken to that level, costs of defense can skyrocket.
Having a broad EPL policy can help your business cover the increasing costs of EPL claims as well as create a working policy for employment practices. Businesses need EPL insurance and Globalex is experienced in securing EPL policies suited to your business’s needs. Contact a Globalex broker today to discuss your business’s exposures to Employment Practices.
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