Wrongful termination, discrimination, breach of contract, sexual harassment — as an employer, your orthodontic practice faces the risk being sued for these employment-related claims and more. To fully protect your practice from this risk, your practice may require Employment Practices Liability insurance (EPLI).

Read on to better understand this coverage and the difference a policy from the AAO-Endorsed Insurance Program can make for your practice.

Understanding Employment Practices Liability Insurance for AAO Members

What Is Employment Practices Liability insurance?
Employment Practices Liability insurance helps protect your practice from claims that may be made against you as an employer. Coverage includes the cost of fighting allegations in court, regardless of the outcome, as well as judgements or settlements that may result.

EPLI can protect you and your practice from a wide range of employment-related claims, including:

  • Wrongful termination
  • Sexual harassment
  • Invasion of privacy
  • Wage and hour law
  • Discrimination (age, gender, race, religion, etc.)
  • Breach of contract and more

These claims may be brought against your practice by current and former employees, or even a prospective job candidate you interviewed.

How can I prevent employment-related claims?
As an employer, there are several concrete actions you can take to prevent employment-related claims:

  • Always follow hiring and firing best practices.
  • Create a welcoming and professional environment.
  • Require bias and harassment training for employees.
  • Develop and enforce safe workplace policies.
  • Train supervisors and employees.
  • Monitor operations to ensure a safe workplace.
  • Create an employee handbook with all workplace policies and procedures.

Do I need Employment Practices Liability insurance?
Though it’s not required for practice owners to have Employment Practices Liability insurance, any business with employees is at risk for potential employment-related claims. It’s smart to protect the practice you’ve worked so hard to build.

For small or medium-sized businesses, EPLI may be even more important, as the costs associated with fighting a claim in court can be substantial. Even if you win, employment practices claims can be detrimental to your budget, not to mention your professional reputation.

Employment Practices Liability Insurance for AAO Members

Employment Practices Liability insurance from the AAO-Endorsed Insurance Program is tailored for the specific risks orthodontic practices face. It also offers:

  • An expanded definition of discrimination for added coverage for claims alleging the violation of employment discrimination law or disparate treatment.
  • Protection from monetary jury awards, including coverage against the cost of damages resulting from violation of the Age Discrimination in Employment Act or the Equal Pay Act.
  • Flexible policy limit options from $500,000 to $5M.

The AAO-Endorsed Insurance Program also offers Employment Practices Liability as part of its Business Owner’s Policy package. This version of the offering versus a standalone EPLI policy may be best for smaller practices. The standalone policy may be best for larger practices as it offers higher limits. The more employees a practice has, the higher its exposure. Our team is available to discuss your employment-related risks, and which coverage your practice needs. Contact Lockton Affinity’s dedicated team of representatives today.