Why is EPLI a Must-Have in Hospitality?

Posted on: April 24, 2015 by Renato Cachina

Businesses nowadays are increasingly facing litigation due to employment practices, especially with the scrutiny that the EEOC places on work practices, such as wellness programs. The hospitality industry is no exception. While your clients can protect themselves financially with the right Hotels Employment Practices Liability policy, it’s imperative that they also understand where their exposure occurs.

One of the leading causes of employment practices liability claims is the allegation of discrimination, whether it’s ethnicity, gender, or disability. Even if the discrimination is non-intentional and only perceived by the employee, hotel managers can still find themselves facing a claim. This is especially true since a high proportion of minority employees in hotels and restaurants. There is also statistically a higher number of younger employees in the industry. Age Discrimination could potentially be behind many EPLI claims.

Another common reason for employment practices liability claims is the allegation of wrongful termination. Given that the hospitality industry is highly vulnerable to market pressures, layoffs in the industry are not rare. This, and wage and hour disputes, are frequent issues for hotel managers and owners.

It’s imperative that your hotel clients recognize that not all businesses need the same coverage, and not all EPLI policies are created equal. Policies range in coverage terms and exclusions, requiring the insured to carefully assess the most frequent or likely employment-related claims they may face in their facility, and discuss what type of policy best suits their individual needs.

At ELM PL, we understand the Employment Practices risks that your clients face, which is why we stress how important it is that not only they stay updated on changes, but also have appropriate insurance coverage. Please contact us today at (888) 330-0696 to learn more about our various products and services.

Posted in: blog employment practices liability