Do Staffing Agencies Need EPLI?

employment practices liability

Traditionally, employment practices liability insurance has been used to protect businesses against employee claims of discrimination, harassment, wrongful termination and failure to promote. However, it is also becoming more common for staffing agencies to carry this type of policy. They can face increased exposure to claims when their employees are introduced it another workplace.

Todays updated employment standards can be challenging to interpret. Based on rulings by the National Labor Relations board, staffing agency employees can also be considered economically dependent on the contracting business. This may blur the lines between who the actual employer is. As a result, claims are becoming more complex. Agencies need to protect themselves in the event of a claim.

Protect Against Claims

According to a three-year study launched by the EECO, recruiting firms and other types of employment agencies have been liable for harassment and discrimination faced by individuals theyve placed at work sites. The focus has recently moved from worksite issues to the placement policies of the staffing agencies. EPLI coverage protects the business in the event the EEOC makes claims such as:

  • Discrimination
  • Emotional and mental distress
  • Sexual Harassment
  • Slander/libel
  • Privacy invasion
  • Wrongful termination

If employees or the EEOC file a claim stating discrimination, the costs for firms to defend themselves or pay settlements could devastate the business. If you don’t have employment practices liability, talk to an insurance professional today. They can help you determine what types of coverage meets your agency’s needs.