Terminations and EPLI Coverage

Written by Bradley Morton

Director of Human Resources

Applied Business Solutions

May 6, 2021

Not every employee is a fit for the role they were hired for, and unfortunately employment can sometimes end with termination. Even in “At-Will” employment states, employers should approach terminations with care and focus. Providing incorrect or unfounded reasons for termination could potentially lead to legal action, and an Equal Employment Opportunity Commission or lawsuit can have expensive and lasting effects on your business. When terminating an employee, be sure to create a clear plan or strategy ahead of the termination meeting and gather as much corresponding documentation as possible. This should include handbook policies, prior write ups, prior Employee-Supervisor meetings discussing performance, and any other evidence that is relevant to the termination. Avoid relying on information that could be construed as discrimination in any way.

Applied Business Solutions provides many resources to protect you against employment related lawsuits, including a variety of insurances like Employment Practice Liability Insurance (EPLI). Employment Practices Liability Insurance, or EPLI for short, covers businesses against claims by workers that feel their legal rights as employees of the company have been violated. Most small businesses are not even aware that such coverage exists or that they need it, but no business is beyond reproach from these kinds of lawsuits.

The best way to help protect your organization is to consult with our Human Resources team if you have questions about a potential termination or any employment related concerns. We can provide a “stand alone” policy, but oftentimes it is more cost effective to be under our Master EPLI policy through our Applied Business Solutions model. The other advantage of this kind of Master policy is the additional guidance we will provide to avoid any type of litigation in these matters. Our HR team can guide you through dealing with “challenging employees”, and our legal team can help advise and even respond to claimants with the documentation to avoid a claim through the EPLI policy. But in the event it is needed, we provide you with $1,000,000 in coverage for such cases.

To learn more about EPLI Coverage and other Commercial Services, Click Here.

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