Contributed by Jeremy Riddle
Executive Vice President
Roehr Insurance
Contact Jeremy: 513-985-4208
The past few weeks have shown just how quickly employee actions can spill into the public spotlight. A single post or comment on social media can spark more than a spirited debate – it can put employers and businesses in the headlines and even cost employees their jobs.
What might once have been handled quietly inside the workplace can now spread instantly and that creates both reputational and legal risks for employers.
For business owners, the question is clear: how do you protect your company when what an employee says creates unwanted attention or even potential claims? The answer is preparation. That means having strong internal policies and training in place, backed by specialized insurance designed to step in when disputes escalate.
Employment Practices Liability Insurance (EPLI) is one of the most important tools available to help shield businesses from the financial and reputational fallout of employee-related claims.
Employment-related lawsuits have become one of the fastest-growing risks facing companies today. These claims can come from current employees, but what many employers don’t know is that they can also be filed by former staff - or even job applicants.
Common examples include:
• Discrimination based on race, gender, age, disability, or another protected class
• Sexual harassment
• Wrongful termination or demotion
• Retaliation after an employee files a complaint or raises a concern
• Breach of employment contract
• Emotional distress tied to workplace conduct
Even when a company has acted appropriately, defending against these allegations can be costly and disruptive. EPLI exists to offset those risks, covering legal defense, settlements, and judgments that might otherwise threaten the financial stability of a business.
The Importance of Strong HR Policies
While having the right insurance is essential, it can’t replace consistent, good practices through clear policies.
The employee handbook - If you own a business of any size, make sure you have a thorough employee handbook that clearly spells out expectations around workplace behavior, equal opportunity, anti-harassment, and anti-retaliation.
The current news cycle could serve as a reminder that it needs to be reviewed regularly, updated to reflect current laws, and acknowledged in writing by every employee. After all, social media today isn’t what it was even five years ago (or even five months ago).
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Training - Regular sessions for managers and staff - covering everything from hiring practices to how to report misconduct – help to reinforce the rules and make sure your employees understand them and the consequences, should they choose to make social media their sounding board or soapbox.
It’s important to note that these practices don’t just protect the employer. When employees trust that complaints will be taken seriously and handled fairly, a company lowers its risk and strengthens its culture at the same time.
Document...Then, Document Some More
When disputes do arise, documentation is often what separates a strong defense from a weak one. Records of hiring decisions, performance reviews, disciplinary actions, and internal investigations show that policies are not just on paper but followed. Without those records, it could prove difficult to prove fairness if the matter moves to the courts.
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The Ever-Evolving Reality of Social Media
To say the gray areas created by social media are making today’s environment is an understatement. An employee may feel passionate about an issue or a situation, post something others may consider controversial or hurtful - way after quitting time - but the employer can still end up dealing with the fallout.
This is exactly why EPLI has become such a critical piece of risk management. While general liability or workers’ compensation policies won’t respond to employment-related claims, EPLI is designed to fill that gap.
How EPLI Works with Risk Management
Insurers typically expect businesses to have their HR house in order before they’ll extend coverage. That might mean sharing a copy of your handbook, your training policies, and your documentation process. Companies that can demonstrate strong internal practices usually find it easier (and often less expensive) to secure EPLI coverage.
Depending on your business needs, EPLI can be purchased as a standalone policy or bundled with other management liability coverages, such as directors and officers (D&O) liability or fiduciary liability insurance.
Have You Built a Culture of Protection?
At the end of the day, protecting your business means creating a workplace rooted in fairness and accountability. Employees who feel respected and supported are more engaged, and that reduces the likelihood of claims ever being filed.
Still, even the best-run organizations can face disputes. That’s why the strongest protection comes from combining well-documented policies and training with EPLI coverage, a safety net that allows companies to navigate today’s fast-moving business climate with confidence.
