Employment Practices Liability in Thailand

What is Employment Practices Liability Insurance?

Employment Practices Liability Insurance (EPLI) in Thailand serves as a vital shield for businesses facing claims from employees alleging violations of their legal rights within the company. The upward trajectory of lawsuits initiated by employees against their employers is evident, transcending the confines of large corporations to impact businesses of varying sizes. This growing trend underscores the recognition that even smaller companies require robust protection. Some insurers respond to this demand by providing EPLI as an endorsement to their Business Owners Policy (BOP), thereby modifying policy terms and conditions to include this essential coverage. Alternatively, businesses can opt for EPLI as a stand-alone coverage, addressing the evolving landscape of employment-related liabilities with comprehensive protection.

Employment Practices Liability Insurance provides protection against many kinds of employee lawsuits, including claims of:

• Sexual harassment
• Discrimination
• Wrongful termination
• Breach of employment contract
• Negligent evaluation
• Failure to employ or promote
• Wrongful discipline
• Deprivation of career opportunity
• Wrongful infliction of emotional distress
• Mismanagement of employee benefit plans

What is the cost of Employment Practices Liability Insurance?

The cost of Employment Practices Liability Insurance coverage in Thailand depends on your type of business, the number of employees you have and various risk factors such as whether your company has been sued over employment practices in the past. The policies will reimburse your company against the costs of defending a lawsuit in court and for judgments and settlements. The policy covers legal costs, whether your company wins or loses the suit. Policies also typically do not pay for punitive damages or civil or criminal fines. Liabilities covered by other insurance policies such as workers compensation are excluded from EPLI policies.

To prevent employee lawsuits, educate your managers and employees so that you minimize problems in the first place:

• Create effective hiring and screening programs to avoid discrimination in hiring.
• Post corporate policies throughout the workplace and place them in employee handbooks so policies are clear to everyone.
• Show employees what steps to take if they are the object of sexual harassment or discrimination by a supervisor. Make sure supervisors know where the company stands on what behaviours are not permissible.
• Document everything that occurs and the steps your company is taking to prevent and solve employee disputes.

For further information on what policies your business requires, contact Thailand Insurance Services and speak with one of our advisors today.