Does Employee Morale Affect EPLI Claims?

Does Employee Morale Affect EPLI Claims?

Last week, we touched on some of the top Employment Practices Liability issues your clients should be aware of as we progress into 2015; including how important it is to protect employee data from cyber hacks and proceeding with caution when implementing wellness programs. While these have both been hot topics recently, one area that also deserves focus in the EPLI landscape is the threat of discrimination accusations.

On the heels of recent claims of discrimination brought forward by the EEOC, employers wonder what the best way to avoid claims of discrimination is. Of course, ensuring that they comply with all state and federal laws in these regards is the first step. It’s also imperative to have the right Employment Practices Liability Insurance coverage, should a claim arise. No claim is 100% avoidable. Another way employers could potentially reduce their risks though is by putting more focus on improving employee morale within their company.

Recognizing employees on an individual basis is one method of boosting employee morale. While this may be more difficult for large scale companies with 100+ customers, the message still needs to be sent that each employee is important to the success of the business. While sending out a mass email announcing a team accomplishment is great, it doesn’t do much for the one employee who may have gone above and beyond and worked overtime to complete a project on time.

Oftentimes, employees know what inefficiencies exist within a company; however do not feel empowered to share this. Giving employees responsibility and encouraging them to speak up is another method of improving employee morale. Overall, the best way to boost morale is to treat employees as individuals.

Could taking these steps affect EPLI claims? While there is no way of knowing this for sure, it stands to reason that improving morale will make employees feel better about the organization they work for, and when faced with a challenge may be more apt to work with their employer to find a solution, rather than retaliating by filing an EPLI claim.

At PL Risk Advisors, we understand the unique Employment Practice Liability Insurance risks you face, as well as those of your clients. Whether your client is the head of a large corporation or a small business owner, EPLI should be part of their comprehensive insurance program. To learn more about our EPLI policies as well as the other products we offer, please contact us today at (855) 403-5982.