Oil and gas businesses employ millions of workers. Every worker, from the most junior to the most senior, has a right to a safe, secure workplace. If they allege the company mismanaged their employment, the company could lose out. With the appropriate liability insurance, namely employment practices coverage, you can respond to charges leveled against you. What’s this coverage? Why is it important within your industry?
Your employees range from rig managers to high-level executives. They all could feel mistreated during in the workplace. Use your liability coverage to respond to these charges.
What’s EPLI coverage?
Employment Practices Liability Insurance (EPLI) pertains to mistakes made by companies in the course of hiring or retention. All employees have a right to fair employment. Therefore, should the company act incorrectly, the affected parties might have a claim against the business. Given that the oil and gas industry has as many employees as any other business, coverage is critical.
Let’s say that a rig employee alleges that a manager created an abusive and harassing atmosphere. That’s likely in breach of certain employment laws. As a result, the employee might file a lawsuit against the company and the suspect parties. EPLI coverage can step in here.
An EPLI policy might help you cover fees, settlements and judgements following suits. Thus, you will place your business in a more secure position. You’ll also be able to better compensate those wronged by your actions or inaction.
Establishing the appropriate protection
All businesses are individual entities, even within the oil and gas industry. So, the EPLI coverage yours needs might differ from that of your nearest competitors. Consider some of these guidelines to help you establish the appropriate coverage.
- Determine which employees should have coverage under the policy. These might range from high-level executives to volunteers. As a rule of thumb, insure all those who might play a role in hiring or termination.
- Consider the employment practices within your business. How does your hiring or termination process work? Does this increase the potential for an EPLI claim?
- Think about some of the claims that might arise. Could someone allege sexual misconduct? What about infliction of emotional distress or improper reviews? Does your policy effectively address these potential risks? If it doesn’t, you might need to adjust more coverage.
- Choose appropriate limits and deductibles for the value of your business. Examine the average claim cost in your industry. Adjust coverage to create as much financial protection as you can.
You don’t have to be an expert on EPLI coverage to get the right policy. Instead, provide your agent with a full description of your operating risks. That will help them determine the best way to insure you.