Michigan EPL Insurance: Reducing Wrongful Termination Claims

Today’s society is more litigious than in the past, meaning that business owners and managers need to be aware and prepared should an employee lawsuit occurs. The best way to prepare for potential claims, such as wrongful termination, is to invest in an Employment Practices Liability policy, or EPL Insurance.

Although wrongful termination claims cannot always be avoided, we’ve highlighted some steps you can take that may reduce the chances of one happening.

Hiring and During Employment:

• Create a written policy signed by you and the employee, stating that employees work on an “at will” basis.
• Do regular evaluations of your employees and keep both written and digital documentations of these reviews.
• Investigate infractions promptly and thoroughly.

When Considering a Termination:

• Ensure that the reasons for termination are lawful.
• Review agreements, policy manuals, letters, or other documents that might have stated or implied a promise of continued employment.
• Follow your company’s written termination policies.
• Review the employee’s file to confirm that ground for termination are documented.

After Deciding to Terminate An Employee:

• Review benefits, including severance pay, payment for vacation or sick time, and continuation of insurance benefits, with employee.
• Though not appropriate for every situation, consider proposing an additional severance benefit conditioned on the employee signing a release of claims. It’s wise to seek the advice of a lawyer if taking this route.

Following these steps could reduce the risk and number of wrongful termination claims against your company. However, your best protection lies with Employment Practices Liability coverage. At Capital Insurance Group, we can show you just how affordable our EPL insurance and other Business Insurance policies are. Our agents are ready to go to work for you, so contact us today at 888.296.0418.