EPLI Claims That Arise in the Hiring Process

Businesses may already have a tough enough time finding the right talent and getting them installed in their work culture without having to think of EPLI claims. A lawsuit for any business can be a major hit, be it financial or legal. When a workplace is involved, it can in fact cause damage that can end up hurting sales, reputation, and overall business.


Companies should focus on better hiring, interviewing, and onboarding processes in order to eschew this kind of damage and create a company culture centered around awareness. As long as you’re in the know about certain EPLI claims and how to avoid them, you’ll have a good chance of avoiding potential trouble.


Here’s a better look at potential EPLI claims.


A Brief Overview of EPLI Claims

EPLI claims can be extremely expensive to take care of. The average cost of a claim hovers around $125,000, with around 25% of all judgements exceeding $500,000. One way business can avoid these steep fees and payouts is to invest in employment practices liability insurance, which gives companies coverage against employment-related lawsuits. These can be claims of harassment, wrongful termination, breach of contract, discrimination or other work-related problems.


These types of lawsuits are becoming increasingly common, especially in the wake of the #MeToo era that has put sexual harassment and assault in the workplace in the spotlight.


Trends to Be Aware Of

It’s important to be knowledgeable of what to potentially be on the lookout for with EPLI claims. While not everything can be prevented, having awareness around certain risks can help to increase the chances of avoiding legal trouble altogether while simultaneously sustaining a culture of respectability among all employees.


  • Invasion of Privacy: Employees are monitored at work to a certain degree, but they still have rights to privacy. Employees can sue their employer for situations that come from secret monitoring or accessing social media accounts, for example.
  • Background Checks: Written consent is always needed by an employer when it comes to background checks. For new hires, it should be expected that their work history, at least, will be researched, but employers still need to request this in writing.
  • Pregnancy: If someone is expecting, they still shouldn’t be expecting to be unfairly treated at work. Just because someone is pregnant doesn’t mean they should be treated differently.
  • Unpaid Internships: According to the Fair Labor Standards Act, employers need to define who is an employee and who is an intern. As employment laws continue to change over time, it’s important that businesses pay close attention to how things will evolve over time.


About Axis Insurance

At Axis Insurance Services, we aim to help our customers identify their exposures and protect themselves. Founded in 1999, we offer insurance programs to a wide variety of professionals and industries including attorneys, real estate, healthcare, architects, and more, and also have a wholesale division. We pride ourselves on offering flexible insurance coverage tailored specifically to each customer’s needs. To learn more about our solutions, contact us at (877) 787-5258 to speak with one of our professionals.

EPLI, Employment Practices Liability (EPLI), Hiring Claims

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