Minimizing EPLI Risks in Your Medical Practice

A medical practice places employees in very high-pressure situations. Even routine caregiving creates an intense working environment. It helps to have a good team in place to manage the day-to-day flow of the business.

However, as soon as you start to hire employees, you open the door to personnel risks. There’s always a chance that hiring, retention or termination could lead to allegations of inappropriate practices. Prospective hires and seasoned employees might claim that your business discriminated against them. Should such a situation arise, your practice could benefit from employment practices liability insurance (EPLI).

Enrolling in EPLI Coverage

EPLI coverage can help businesses respond to claims of unfair employment practices. This might include allegations of discrimination, harassment, unlawful termination and more. It serves a vital purpose in the professional hiring process.

Let’s say you hire an employee whom you later fire because of improper conduct. The employee might sue your practice because they feel they did not get fair treatment. They might allege that you fired them because of their age or gender. In many cases, the law does not allow termination of employment solely on these factors.

In such cases, EPLI coverage might come in handy. It can often help you cover legal fees or other costs arising from these allegations. However, if it turns out that you did actually violate employment law, the policy might not pay.

Preventing EPLI Claims in Your Business

No business wants to experience an EPLI claim. It can often cause emotional and reputation damage to your business. Your practice likely cannot afford these claims, so preventing them becomes paramount.

• Establish clear and concise hiring procedures for screening, vetting and interviewing new employees.
• Prospective employees should receive a full job description. This description must help them understand what to expect during and following hiring.
• Set up an employee handbook. It should thoroughly explain workplace rights, non-discrimination practices and equal employment opportunities. Employees and managers should sign and abide by these regulations.
• If required by law, provide periodic information to your employees regarding their rights.
• Revise all employment practices as needed. Both lawful changes and expressed concerns might lead to policy revisions.
• Give employees outlets to confidentially and securely report concerns.
• Conduct periodic reviews of employees and hiring practices. Give current employees strong, written feedback to help them understand any ongoing concerns.

Talk in-depth with your legal counsel and EPLI insurance provider. Your counsel can help you understand employment requirements in your industry and location. Your EPLI provider can help you specifically set up your policy to your needs. Don’t run a practice that doesn’t have thorough coverage. Contact us for more information, or get a quote on EPLI coverage in New York.