Employment Practices Liability (EPL) coverage protects employers against claims brought against them by employees. Your temporary staffing insurance should contain an EPL policy so that both you and your client are covered if an employee files a complaint against one or both of you.
Possible Claims Made
Almost any action by an employer is under scrutiny when it comes to ensuring fair employment practices. There are several types of cases that could be brought up by employees:
- Wrongful termination
- Wrongful demotion or lack of promotion
- Sexual harassment
- Unfair discipline
Employees might challenge the staffing agency with any of the claims listed, and whether the allegations hold up in court or not, the legal process might still be expensive. EPL coverage can help offset some of the cost.
Because a staffing agency places its employees into jobs in other organizations, employees who feel wronged in some way will often sue both the staffing agency and the client. They hold not only the supervisor who committed the offense responsible but also the employer who placed them in that position. Temporary staffing insurance that covers both the staffing agency and the client can be a lifesaver when this happens.
If your staffing agency is ever in a position to justify its employment practices, you might be glad to have EPL coverage as part of your insurance policy. A trusted insurance provider can find the exact coverage you need.